Antam develops six expansion projects worth $3.1 billion
Wednesday, March 21 2012 - 02:54 AM WIB
Antam president director Alwin Syah Lubis said that the expansion projects would further strengthen the company?s downstream operations so that the company would be able to meet the government?s regulation which no longer allows export of unprocessed ores beginning 2014.
Alwin said that the Tayan chemical grade alumina plant in West Kalimantan would process bauxite ore into chemical grade alumina (CGA) with a capacity of 300,000 tons a year. The project with estimated investment of about US$450 million will be completed in 2014. Antam has an 80 percent ownership in the project and Showa Denko of Japan holds the remaining 20 percent.
The ferronickel project in East Halmahera with estimated investment of US$1.6 billion (including power plant) will process nickel ores into ferronickel with a capacity of 27,000 tons a year. The project, which is wholly owned by Antam, is expected to begin commercial operation in 2014.
Meanwhile, the sponge iron project in South Kalimantan with investment of US$150 million will process sponge iron with a capacity of 315,000 tons a year. The project, a joint venture between Antam (34 percent) and Krakatau Steel (66 percent) is expected to begin operation this year.
Alwin said that Antam was currently developing a nickel processing plant in Mandiodo, Southeast Sulawesi, and a smelter grade alumina plant in Mempawah, West Kalimantan. The two projects, wholly owned by Antam, are expected to begin operation in 2015.
The smelter grade alumina plant in Mempawah with estimated investment of about US$1 billion will process bauxite ore into smelter grade alumina (SGA) with a capacity of 1.2 million metric tons a year, while the nickel project in Mandiodo with estimated investment of between US$350-400 million will process nickel into pig iron with a capacity of 120,000 tons a year.
?We will also upgrade the existing ferronickel plant in Pomalaa to improve its efficiency. This project will cost between US$450 million and $500 million, and will begin operation in 2014,? he added.
Alwin hoped that these projects would receive fiscal facilities such as tax holiday and tax allowance which are regulated under the finance minister regulation No 130/PMK 011/2011 on deduction and exemption of income taxes. (*)