Norwegian company to team up with Antam to develop bauxite mine

A Norwegian company will team up with state owned mining company Aneka Tambang (Antam) to develop a bauxite mine and build a bauxite processing plant in West Kalimantan, Darmawan Djajusman, the Deputy for Promotion of the Investment Coordinating Board (BKPM) said.

The Norwegian company and Antam would invest about US$2.1 billion in the bauxite project which was expected to begin this year, Darmawan said as reported by Investor Daily.

"They are still seeking for the ideal location for the construction of a bauxite processing plant. They could build the processing plant in West Kalimantan, West Sumatra or in Bintan," he was quoted as saying.

When confirmed, Antam's director for operation Alwin Syah Loebis, however, said that he was not aware about the involvement of the Norwegian company. He said that Antam will team up with Marubeni Corporation, Showa Denko, both of Japan, and Malaysian Mining Corporation to develop a bauxite mine and a chemical grade alumina (CGA) plant in Tayan, West Kalimantan.

The plant is expected to begin operation in 2010 with a capacity of between 300,000 tons and 500,000 tons a year.

Separately, Antam corporate secretary Ashur Wasif told Petromindo.com that there was not definite committment yet between Antam and the Norwegian investor on the planned bauxite project.(Godang)