TPIA - PT. Chandra Asri Pacific Tbk

Rp 9.100

-50 (-0,55%)

JAKARTA. PT Chandra Asri Pacific Tbk (TPIA) and BCI Minerals Limited (BCI) have signed a salt binding offtake agreement from Madrie Salt project owned by BCI.

The salt will be used at global chlor-alkali plant, which is currently being developed in Indonesia. The salt that will be supplied for TPIA is set to 300 thousand tonnes in the first year, and will rise up to 600 thousand tonnes per annum in the second and third year.

Said agreement will take effect for 3 years. However, TPIA is granted an option to extend the term for another 3 years.

“This partnership solidifies our competitive market-leading position for our plans in progress to develop a world-scale caustic soda and ethylene dichloride plant,” said Erwin Ciputra, CEO of TPIA.

It is worth mentioning that this agreement will contribute towards the fulfilment of offtake requirements that are required as conditions for loan facility withdrawal of BCI. According to IDNFinancials data, BCI is an Australia-based business entity that is currently developing its industrial mineral business with salt and potash as its business initial focus.

“BCI is delighted to have entered into an offtake agreement with Chandra Asri, one of Indonesia’s leading chemical and infrastructure companies,” added David Boshoff, President Director of BCI. (KR/ZH)