Mar. 14. 2007
Showa Denko K.K.、Marubeni Corporation
Showa Denko K.K. (SDK) has reached agreement with PT. ANTAM Tbk of Indonesia, Straits Trading Amalgamated Resources Private Limited (STAR) of Singapore, and Marubeni Corporation of Japan to establish a joint venture company in the middle of next month for conducting a feasibility study for an integrated chemical grade alumina plant from the mining of bauxite ore in the Tayan district, West Kalimantan, Indonesia.
The JV will determine the amount of required investment and ways of financing while carrying out an environmental assessment. Based on the results of the feasibility study, the four parties will decide whether or not they will implement the plan. If they decide to proceed, the JV will serve as the nucleus for carrying out the project.
SDK is currently producing chemical grade aluminum hydrate and alumina for non-smelting purpose at its Yokohama Plant and is selling the product mainly in the Japanese market for such applications as water clarifier, performance materials and electronics. These products are being produced from imported bauxite ore. All Japanese alumina manufacturers are disposing of the bauxite residue, which is generated through the process of alumina, consisting mainly of iron oxide and silicon dioxide, in the designated area of the Pacific Ocean based on the domestic law. SDK is planning to terminate the disposal of bauxite residue in the sea by 2015.
As the Tayan district has reserves of high-quality bauxite, the four parties are planning to build a world-scale 300,000 tons/year chemical grade alumina plant by using the bauxite ore in Tayan.
Outline of the F/S JV
Name: P.T. Indonesia Chemical Alumina
To be established in April 2007
President: Dolok Robert Silaban
Capital: 27.3 billion rupiah
Shareholders: PT. Antam. Tbk, SDK, STAR, Marubeni Co.,
Outline of ANTAM
Head office: Jakarta, Indonesia
Established in July 1968
President: Deddy Aditya Sumanagara
Capital: 4.3 trillion rupiah
Shareholders: Owned 65% by the Indonesian Government
Scope of business: Mining, processing and exporting of gold, nickel, bauxite and other minerals
Outline of STAR
Head office: Singapore
Established in December 2004
President: Norman Ip Ka Cheung
Shareholder: Wholly owned by Straits Trading Company Ltd.
Scope of business: Investment