Jul 14, 2010

Antam denies alliance with Baosteel

PT Aneka Tambang Tbk (Antam) denies a joint venture plan to set up smelter alumina grade with Chinese company namely Baosteel
Antam Corporate Secretary Bimo Budi Satriyo said Antam doesn't has any plan to set up a joint venture company with Baosteel.
"There is no intention to cooperate with Baosteel. But, we have a plan to process bauxite into smelter grade alumina at Mempawah, West Kalimantan and team Hangzhou Jinjiang Group China," he told Insider Stories today.
He explained Antam will control 55% at the joint venture and Jinjiang Group will hold the remaining stakes. The plant, worth US$900 million-US$1 billion, will be installed with annual production capacity of 1 million tons of smelter grade alumina. "We are underway to finalize a feasibility study."
Indonesia Investment Coordinating Board (BKPM)'s Chairman Gita Wirjawan today said Baosteel is interested to set up a US$1.2 billion joint venture with Antam.
"Baosteel will build smelter grade alumina in West Kalimantan with Antam. The agreement might be signed soon," he said. According to him, the joint venture is expected to produce 500,000 tons of smelter grade annually.
Disclosure: No position at the stock mentioned above. 

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