Aneka Tambang Tbk (ANTM) will seek new investors to replace Showa Denko KK (SDK) as shareholder of their joint venture, Indonesia Chemical Alumina (ICA). The company will also lower its shareholding in ICA to below 80 percent.
Dimas Wikan Pramudito, Finance Director of ANTM, said that the company wants to evaluate its investment in ICA because the joint venture company has not been able to generate profit and the production level is below the expected level. ANTM and SDK have been discussing to solve this problem but SDK decided to end cooperation with ANTM.
“ANTM consistently wants to lower its holdings in ICA. Previously, SDK wants to raise its shareholding in ICA but there is no agreement in terms and conditions thus we are looking for a replacement,” said Dimas.
However, SDK cannot necessarily end cooperation with ANTM and has responsibility to vendors and suppliers to be completed before releasing their shares in ICA.
ICA was established in 2007 by ANTM and SDK to process bauxite ore into chemical grade alumina (CGA) with a capacity of 300,000 tons per year. The investment value that ANTM has disbursed for the CGA project in Tayan, West Kalimantan is estimated to reach USD 360 million. (*)