Antam Assigned to Buy Inalum

Indonesia Finance

Friday, 25 June 2010 15:40

State Enterprise Minister Mustafa Abubakar said his ministry has assigned state mining company PT Aneka Tambang (ANTM) Tbk to buy stakes in PT Indonesia Asahan Aluminium, the nation’s only aluminum smelter.

The government's partnership with the Japanese government in Inalum will expire in 2013. Inalum operates alumunium smelter plant with installed capacity of 225,000 tons per year, located in Kuala Tanjung, North Sumatera province. As much as 60 percent of Inalum’s production is exported to Japan. The rest is sold domestically.

"The government is ready to hold 100 percent stake of Inalum and the state enterprise ministry has assigned Aneka Tambang to buy Inalum's stake owned by Japan," Mustafa was quoted by news portal detikfinance.com as saying on Friday.

He said Antam had shown its readiness to acquire Inalum stake while state brokerage firm PT Danareksa and PT Perusahaan Pengelola Aset (PPA), a company established to manage leftover assets of Indonesia Bank Restructuring Agency (IBRA), also offer to support the funding for the acquisition.

In the preliminary valuation, Inalum project's fair value was US$240 million but the increasing price of its raw material has boosted the Inalum fair value to US$450 million. The plant received alumina, key raw material to produce aluminium, from Australia.

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