Cita Mineral?s subsidiaries sign bauxite sales agreement

By Romel S. Gurky

IDX-listed mining firm PT Cita Mineral Investindo Tbk announced on Monday that PT Well Harvest Winning Alumina Refinery (WHW) and PT Harita Prima Abadi Mineral (HPAM) signed on Nov. 26, 2015 an agreement on the sales and purchasing of Metallurgical Grade Bauxite (MGB).

Under the agreement, HPAM will sell MGB from its bauxite mine in Ketapang to the alumina refinery plant now under construction by WHW in Ketapang, West Kalimantan. The development progress of the US$ 1 billion plant had reached 78.78 percent as of end-October 2015. The MGB will be processed into Smelter Grade Alumina (SGA) at the plant, the firm said in a statement.

HPAM is 99 percent owned by Cita Mineral. According to the firm, it also owns 30 percent of WHW in partnership with by China?s Hongqiao Group Ltd.

HPAM will initially sell 500,000 metric tons of MGB to WHW based on specifications and prices set by both parties.

Editing by Johannes Simbolon