PT Indonesia Asahan Aluminum (MIND ID), a state-owned miner, aimed to boost the production around 500,000 tons of aluminum per annum to curb import - Photo by Kumparan

JAKARTA (TheInsiderStories) – PT Indonesia Asahan Aluminum (MIND ID), a state-owned miner, aimed to boost the production around 500,000 tons of aluminum per annum to curb import, local media reported today (01/07). As now, the country still imports of aluminum 700,000 ton per year due to limited supply.

The managing director, Oggy Achmad Kosasih, said at present, the company has a production capacity of 250,000 tons a year in the form of ingots, alloys and billets. The first phase plan its expecting to lift the capacity by 30,000 tons per annum, he adds.

He revealed, MIND ID plans to build two new plants with an investment around US$100 million and will be realized no later than the next two years and will have a production capacity 330,000 tons of aluminum per year. In addition, said the CEO, Orias Petrus Moedak, to complete the projects under the company, the allocated capital expenditure (capex) around Rp25 trillion ($1.78 billion) in this year.

He urged, the main priority of the company is executing projects of its subsidiaries. Some projects that must be completed soon, he explained, owned by PT Bukit Asam Tbk (IDX: PTBA) gasification project in Tanjung Enim

Then, PT Antam Tbk‘ (IDX: ANTM) ferronickel plant project in East Halmahera and the development of a smelter grade alumina refinery in West Kalimantan. There is also the construction of PT Freeport Indonesia’ copper smelter in Gresik, East Java, and PT Timah Tbk’ (IDX: TINS) tin smelter project.

Currently, the miner, in the process to acquire 20 percent stake of PT Vale Indonesia Tbk (IDX: INCO), representing on government obligation on the divestment process by its holding Vale Canada Ltd., and Sumitomo Metal Mining. MIND ID prepared funds $500 million to acquire the shares.

Prastomiyono said the acquisition planned is targeting to be completed in the middle of 2020. He stated, the company will use internal cash and from bank loans for the acquisition plans. There are several steps must be passed by the holding mining before completing the acquisition, said the director.

Currently, he said, the company has secured loans from two Japanese banks, Sumitomo Mitsui Banking Corp., MUFJ Bank and local lender, PT Bank Mandiri Tbk (IDX: BMRI). There are several steps must be passed by the holding mining before completing the acquisition.

The first step is the initial agreement between the parties, finalize the sales and purchase agreement, shareholders agreement and off taker agreement. He hope, the conditional sale and purchase agreement signing with INCO‘ shareholders in this month.

Written by Staff Editor, Email: theinsiderstories@gmail.com