ANTAM And Hangzhou Jinjiang Group China Sign Amended Joint Venture Greement To Build Smelter Grade Alumina (SGA) Plant

The SGA Mempawah plant will process 4 million wmt of bauxite ores to produce 1 million metric tons of alumina annually. Estimated project cost is US$1 billion. The joint venture ownership is envisioned as 49% ANTAM and 51% HJG with an option for ANTAM to become majority after three years of commercial operation. ANTAM expects construction to start in 2011 with commercial operation in 2014. Following the signing, ANTAM and HJG will work toward due diligence of the project as well as selection of the EPC contractor and financing arrangements. The move is in line with ANTAM’s strategy to add value toANTAM’s bauxite reserves by moving downstream. The development of the SGA plant is also part of ANTAM’s strategy to integrate its bauxite business. Smelter GradeAlumina is the raw material for aluminium, and is envisioned to supply domestic.