Jakarta (ANTARA News/Asia Pulse) - Indonesia's state-owned mining company PT Aneka Tambang (Antam) (JSX:ANTM) is set to start construction of a US$400 million alumina factory in Tayan, West Kalimantan.
Based on the feasibility study, the cost of the project will rise to to US$400 million from an earlier estimate of US$250 million. The exact figure is still being studied but it will increase to at least US$400 million due to a surge in construction costs, Antam corporate secretary Bimo Budi Satriyo said.
Construction, due to start in the second half of the year, will be handled by PT Indonesian Chemical Alumina, a new company jointly owned by Antam, Showa Denko KK (TSE:4004) and Marubeni Corp. (TSE:8002).
Antam President Dedi Aditya Sumanagara said the project is expected to be completed in 2010, and it will have a production capacity of 300,000 tons of alumina a year.