Feasibility Study on 300,000 Tons/Year New Chemical Alumina Project in Indonesia

Singapore March 13th news, PT Antam and its partners have signed an agreement to conduct a feasibility study on a joint venture new 300,000-ton/year chemical alumina plant. The new project, PT Indonesia Chemical Alumina (ICA), was located in Tayan, West Kalimantan, Indonesia. Antam holds 49% of the company's shares, Showa Denko holds 30%, Singapore Straits Trading Amalgamated Resources and Marubeni of Japan hold 15% and 6% respectively. The agreement did not set a time limit for completion of feasibility study, but Antam expects that the alumina plant will start trial production in late 2007 and enter commercial production in 2010. Antam also stated that it has the right to choose to raise its shares to 51%, but did not disclose how its partner equity structure will change. Antam is Indonesia's leading nickel-iron producer. The company said that it has long planned to engage in alumina production.

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