State nickel and gold miner PT Aneka Tambang (Antam) said the company and its partners have formed a joint venture called PT Indonesia Chemical Alumina (ICA) to build a chemical grade alumina plant in Tayan, West Kalimantan province.

Antam's equity partners in the joint venture firm are Japan's Showa Denko KK (SDK) with 30 pct, Straits Trading Amalgamated Resources Private Limited of Singapore (STAR) with 15 pct, and Japan's Marubeni Corporation with 6 pct.

Antam holds the remaining 49 pct, with an option to increase its ownership to 51 pct in the future.

Based on a previous feasibility study in 2003 the project is capable of producing around 300,000 tons of chemical grade alumina per year, Antam said while noting that the figure could change once the study is updated.

Antam expects construction to begin in late 2007 and commercial operations to begin in 2010 with the alumina to be sold to Japan and other countries as well as internally.

The project is likely to be funded 65 pct through debt and 35 pct through equity, the company told XFN Asia.
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