Antam will soon sign JVA for its alumina project

Publicly listed mining company PT Antam will soon sign a joint venture agreement (JVC) with Showa Denko and Marubeni Corporation, both of Japan, and Malaysian Corporation from Malaysia to set up chemical grade alumina (CGA) plant in Tayan, West Kaliamantan, Investor Daily reported on Tuesday.

Antam's president director Deddy Aditya Soemanegara said in Jakarta on Monday that Antam and its partners were still preparing the financing for the project, which would be worth about US$220 million.

Deddy said that the construction of the alumina plant would be commenced within two and three years from now. "We hope the plant will begin its commercial production in 2008 or 2009," he added.

He said that about 35 percent or about US$70 million of the investment requirement for the project would be financed with the equity of the joint venture's shareholders, while the other 65 percent or about US$145 million would be financed by export credits from Japan Bank for International Corporation (JBIC).

The plant will have the capacity to produce about 300,000 tons of CGA a year. (*)