Antam Starts Contruction of Tayan CGA Plant Today - The Indonesia Today

State-owned miner PT Aneka Tambang Tbk (ANTM) today announces the start of construction work for its chemical grade alumina (CGA) plant in Tayan, Sanggau, West Kalimantan, costing around US$450 million.

Industry Minister MS Hidayat officially today launched the groundbreaking ceremony witnessed by Gita Wirjawan, chairman of the Investment Coordinating Board (BKPM) and Cornelis MH, governor of West Kalimantan.

Tayan CGA project is handled by Antam's unit, PT Indonesia Chemical Alumina (ICA), a joint venture company with Japan's Showa Denko K.K. (SDK). Antam holds 80% ownership in the project.

The project is funded by internal cash of Antam and SDK, loan from Japan Bank for International Cooperation (JBIC), debt guarantee from Japan Oil, Gas and Metals National Corporation (JOGMEC).

The construction is awarded to unincorporated consortium of state construction company PT Wijaya Karya Tbk (WIKA), Tsukishima Kikai Co. Ltd (Japan) and PT Nusantara Energi Abadi (Nusea).

The construction is expected to take 32 months and to commence operation commercially in January 2014. Tayan CGA project has revenue potential of around US$200 million per year.

Tayan CGA is expected to produce 300,000 tons of CGA per annum, of which 200,000 tons will be shipped out to Show Denko's factory in Yokohama, Japan, while the balance will be sold in domestic market.