JAKARTA. PT Aneka Tambang Tbk (ANTM) or Antam will partner Chinese companies to build five smelter projects worth US$ 7.2 billion. The five smelters will be used to process aluminiums, blast furnaces, ferronickels, stainless steel, and cobalt for battery manufacturing.
Antam CEO Arie Prabowo Ariotedjo said that the first project is an aluminium smelter in Mempawah, West Kalimantan with an investment value of US$ 900 million. The project's groundbreaking is targeted to take place in September.
Antam will partner with a Chinese company called Shandong Xinhai to develop the smelters, with the locations still bein reviewed. There are two potential locations, namely Sorong, West Papua and Halmahera, Maluku.
"We have completed a tender project in the EPC (engineering, procurement, and construction) phase, we have opened a price, and we now need some more negotiations. We hope it will be finalised this month with the groundbreaking taking place in September," said Mr Ariotedjo at the IDX Building, Wednesday (21/8).
In addition, the blast furnace project is currently in the financial closing phase with a first-stage investment value of US$ 90-100 million. Blast furnaces are normally used to chemically reduce and physically convert iron ore.
For the cobalt smelter, Antam will partner its parent company PT Inalum (Persero) with a joint stock investment of 51% and an approximate investment value of US$ 6 billion. Mr Ariotedjo added that Antam has signed a head of agreement (HoA) with another Chinese company called Huayou Cobalt Company Ltd. (AM/MS)