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JOGMEC Makes Financial Assist to Alumina Project in Indonesia- Contributes to Stable Supply of Alumina to Japan -
JOGMEC Makes Financial Assist to Alumina Project in Indonesia
- Contributes to Stable Supply of Alumina to Japan -
PDF version of this page (397 KB)June 13, 2011
On June 13 th 2011, Japan Oil, Gas and Metals National Corporation ("JOGMEC", President: Hirobumi Kawano) provided a liability guarantee to support financing for alumina project promoted by Showa Denko K. K.("SDK", President: Hideo Ichikawa) in Indonesia.
Approximately 26.3 billion yen out of total fund necessary for the project will be financed by the loans from Japan Bank for International Cooperation (JBIC) and private financial institutions (Mizuho Corporate Bank, Ltd. and The Sumitomo Trust and Banking Co., Ltd.). JOGMEC will guarantee 80 %(approx.8.4 billion yen) of approximately 10.5 billion yen to be financed by private financial institutions. It is the second case where JOGMEC and JBIC carry cooperating financing support to a metal resource development project.
The project is a joint venture of SDK and Antam Tbk ("Antam", President: Alwin Syah Loebis). The joint venture company is constructing a plant in Tayan District of West Kalimantan, Indonesia, planning to produce chemical alumina, and the raw material bauxite will be supplied from a mine operated by Antam nearby the plant. The production capacity is 300,000t /y and it is expected to start operation in the beginning of 2014.
While alumina is commonly used for smelting of aluminum, aluminum hydroxide and alumina to be produced in the new plant are important raw materials for Japanese industries, which are widely used for various products such as water purification, functional materials (ceramics, abrasives, fire-resistant materials, heat-emission materials, etc.) and electronic products depending on its characteristics. This is JOGMEC's first financial assistance to alumina project and is expected to contribute to the stable supply of alumina to Japan.
JOGMEC will proactively assist companies which endorse exploration development overseas for stable supply of overall metal resources.
1 The first case was Esperanza copper development project in Chile in September 2009.
An Outline of the Project
The project is run by PT Indonesia Chemical Alumina ("ICA", President: Hendra Santika) which is 80% owned by Antam and 20% by SDK, which constructs the plant and produces chemical alumina in Tayan District, West Kalimantan, Indonesia.
Raw material to produce alumina is stably supplied by the project partner Antam from a bauxite mine nearby the plant via supply agreement between ICA and Antam. It will become the world's biggest production plant which integrates from the mining of material bauxite ore to the production of final products.
The plant will have the capacity to produce 300,000 t/y of chemical alumina, and SDK will off-take 200,000t for sales to customers in Japan. It is planned to start operation in the beginning of 2014.
While SDK is currently producing 200,000 t/y of chemical alumina at Yokohama Plant, the company has decided to withdraw from the chemical alumina production in Yokohama by the end of 2015. SDK will use the 200,000 t/y of products from the new plant to substitute the current production in its Yokohama Plant.
Corporate Profile
(1) P.T. Indonesia Chemical Alumina
Established in February 2007
President: Mr. Hendra Santika
Shareholders: PT ANTAM (Persero) Tbk (80%); SDK (20%)
(2) PT ANTAM (Persero) Tbk
Head office: Jakarta, Indonesia
Established in July 1968
President: Mr. Alwin Syah Loebis
Shareholders: The Indonesian Government (65%) and public
Scope of business: Mining, processing and exporting of gold, nickel, bauxite and other
minerals.
The inquiry about this page.
Metals Finance DepartmentMr. Nishikawa
Tel +81-3-6758-8425
Public Relation DivisionMr.Uematsu
Tel +81-3-6758-8106
