Aneka Mining and Rusal to Study Indonesian Tayan Alumina Plant Project

Indonesia's Anika Mining Company will cooperate with the Russian Aluminum Corporation to launch a feasibility study of the Tayan alumina smelter project in West Kalimantan Province, which is expected to cost about US$1.5 billion.

Comprehensive Foreign Power reported on September 7th that Indonesia's state-owned miner PT Aneka Tambang (Antam) executives stated that the company will cooperate with Rusal to conduct a feasibility study in West Kalimantan (West) Kalimantan) Tayan builds an alumina smelter.

Deddy Aditya Sumanagara, the president of Anegka Mining Company, said on the 4th that the Taian alumina plant project is expected to cost about 1.5 billion U.S. dollars and the annual production capacity will be 100 to 1.2 million tons.

Sumanagara said the study will take about one year and the company will decide whether to develop the project. If the study shows that the project is not feasible, the company will not continue to promote development.

Sumanagara stated that the company is conducting a feasibility study with a Chinese investor to build another alumina smelter nearby. The project will have an annual production capacity of 600,000 tons. He declined to disclose the name of the Chinese company.

Earlier, Aneco Mining Company will invest 220 million yuan in signing an agreement with two Japanese companies, Showa Denco and Marubeni Corporation, and Straits Trading Amalgamated Resources Pte. Ltd. The U.S. dollar is building an alumina plant with an annual capacity of 300,000 tons at the same location, and the plant is expected to start production before 2010.

Tayan is expected to have 100 million tons of bauxite reserves.