Tayan consortium signs EPC contract
Tuesday, August 31 2010 - 06:33 AM WIB
The EPC contract was signed between PT Indonesia Chemical Alumina (PT ICA) and an unincorporated consortium of PT Wijaya Karya (Persero) Tbk, Japanese firm Tsukishima Kikai Co. Ltd. and PT Nusantara Energi Abadi (Nusea) as the EPC contractor of the project, Antam said in statement.
PT ICA is a joint venture company between Antam and Showa Denko K.K. (SDK) of Japan. Antam owns 80% of PT ICA and SDK holds the remaining 20%.
Construction on the project is expected to start in the first quarter of 2011 and it expected to be completed by December 2013 with commercial production in the first quarter of 2014, it said.
The Tayan CGA project is located at Tayan, Sanggau Regency, West Kalimantan Province. The project is planned to produce 300,000 tons of CGA annually.
SDK will use 200,000 tons of CGA from Tayan?s plant as substitute for the current products from its Yokohama plant. The remaining 100,000 tons of CGA will be sold to Indonesian market.
The Tayan CGA project has an estimated cost of approximately US$450 million. The structure of the financing may include external financing and internal cash. The effective date of the EPC contract is dependent upon among other things, the completion of financial close.
CGA products are used for the production of functional materials and electronic materials. Aluminium hydroxide, an intermediate product in alumina production, is used as coagulant for water purification. (kanti)