Marubeni Quits, Antam Controls Chemical Grade Alumina Project

Industries

Tuesday, 10 August 2010 21:02

State-owned mining company PT Aneka Tambang (ANTM) Tbk controls 80% shareholding of PT Indonesia Chemical Alumina (ICA) which will build chemical grade alumina (CGA) plant in Tayan, Sanggau, West Kalimantan.

ANTM told Indonesia Stock Exchange (IDX) on Tuesday, August 10, that it received approval letter from Investment Coordinating Board (BKPM) on August 6 about the acquisition of 15% shares in ICA from Marubeni Corporation for US$525,000.

Marubeni initially controlled 15% shares, while Showa Denko KK owned 20%. After the acquisition, ANTAM controls 80%, while Showa Denko 20%. The CGA Tayan project is currently in the negotiation for an agreement with EPC contractor.

ICA had appointed the consortium of WIKA Group as the Engineering, Procurement and Construction (EPC) contractor of the Tayan Chemical Grade Alumina project.

The consortium of WIKA Group consists of PT Wijaya Karya (Persero) Tbk, Tsukishima Kikai Co. Ltd. and PT Nusea. Following the selection, PT ICA and the consortium of WIKA Group will begin the negotiation on the terms and condition of the EPC. PT ICA expects construction of the project to begin within this year, and is expected to start the commercial operation in 2014.

Currently, efforts to obtain the best optimum financing to fund the Tayan CGA project are well underway with possible support from the Japan Bank for International Cooperation (JBIC) and other reputable commercial banks.

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. The CGA products will be exported to Japan and other countries as well as for domestic sales in Indonesia.

Late last month, Antam signed first amended and restated JV agreement with Hangzhou Jinjiang Group (HJG) of China to build a smelter grade alumina (SGA) plant in Mempawah, Pontianak Regency, West Kalimantan Province.

The SGA Mempawah plant will process 4 million wmt of bauxite ores to produce 1 million metric tons of alumina annually. Estimated project cost is US$1 billion. The joint venture ownership is envisioned as 49% Antam and 51% HJG with an option for Antam to become majority after three years of commercial operation. Antam expects construction to start in 2011 with commercial operation in 2014. Following the signing, Antam and HJG will work toward due diligence of the project as well as selection of the EPC contractor and financing arrangements.

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