Antam to build 4 factories, upgrade 1
The Jakarta Post. Jakarta - 27/06/2011
State miner PT Aneka Tambang (Antam) is planning to build four factories and upgrade another in a move to comply with the 2009 Law on Mineral and Coal Mining, which mandates that national mining firms export processed products.
A ministerial regulation derivative of the law rules that companies that fail to do so will be obliged to pay certain taxes.
Antam managing director Alwinsyah Loebis said in Jakarta on Monday that the company would no longer export raw materials in the future.
He said the new factories would be a chemical grade alumina factory in Tayan, West Kalimantan, with construction estimated to cost US$50 million; a ferronickel factory in Halmahera, Maluku, worth $1.6 billion; a nickel pig iron factory in Mandiodo, Southeast Sulawesi, worth between $350 million and $400 million; and a smelter-grade alumina factory in Mempawah, West Kalimantan, worth $1 billion.
The existing ferronickel factory in Pomala, Southeast Sulawesi, will be “modernized” and the production will be “optimized”, with the project estimated to cost between $450 million and $500 million, he said.
Alwinsyah added that the construction on the Halmahera factory was expected to commence in late November or December this year, kontan.co.id reported.