Tayan aluminum project pending for legal works

Foreign investors for the Tayan aluminum project in West Kalimantan are waiting for the completion of legal works, including the establishment of a joint venture company with state mining company PT Aneka Tambang (Antam) as the owner of the Tayan concession, Republika daily reported on Saturday.

Antam corporate secretary Dohar Siregar said with the establishment of a joint company, the foreign investors - reportedly from Japan -- would also legally own the concession.

He said Antam would own 51 percent stake in the joint venture, while the remaining would go to the foreign investors.

In addition, Dohar said, the foreign investors in the project also wanted to ensure that there would be no constraints from local administrations, following their increased power over natural resources in their areas.

Therefore, Dohar said Antam could not yet give a timetable for the completion of the Tayan project, that would be governed by the third generation of contract of works.

Based on Antam's exploration results, Tayan mining concessions contain 117 million tons of bauxite - a large size for Antam, compared with its bauxite-mining field in Bintan island that produces around one million tons of bauxite per annum.

Therefore, if the facilities for Tayan could produce up to 5 million tons, for instance, the mining project would still be able to operate for 25 years. (*)