Platts
Jakarta keen to put Inalum fully in Indonesian hands
Edited by : AL CIRCLE
2 min read
The government of Indonesia plans to restructure the country's only aluminum smelting company PT Indonesia Asahan Aluminium, or Inalum, by putting ownership wholly in Indonesian hands, a company source said Thursday, confirming local media reports.
Jakarta has a 41.12% share in Inalum, with the balance held by Nihon Asahan Aluminium, a consortium of Japanese investors. The joint venture is due to expire in October 2013.
Platts reported in August that NAA was keen to renew the contract and maintain a share in the alliance, although Jakarta made clear it was considering other options.
On Thursday, the Inalum source said the company's ownership change may unfold in phases. A yet-to-be-identified state entity was likely to initially acquire the Japanese share, before possibly divesting it, he said.
Inalum can produce about 250,000 mt/year of primary aluminum in Kuala Tanjung, Sumatra, typically using alumina sourced from Australia. The current JV contract requires a large portion of the output to be exported to Japan. NAA's shareholders comprise the Japanese government and 12 Japanese companies -- Sumitomo Chemical company Ltd., Sumitomo Shoji Kaisha Ltd., Nippon Light Metal Company Ltd., C Itoh & Co., Ltd., Sojitz Corp., Nichimen Co., Ltd., Showa Denko K.K., Marubeni Corporation, Mitsubishi Chemical Industries Ltd., Mitsubishi Corporation, Mitsui Aluminium Co. Ltd. and Mitsui & Co. Ltd.
Inalum recently inked alumina term contract purchase agreements with Glencore and Alakasa. The deals call for eighteen 22,000 mt parcels to be delivered each year to Kuala Tanjung port in Sumatra, priced as a percentage of LME aluminum. The contracts run from from April 2013 to March 2015.
Indonesia's state enterprises minister Dahlan Iskan was quoted by Antara on Thursday as saying that local firm PT Timah had bought a bauxite mine in Myanmar with plans to produce alumina for Inalum's consumption.
PT Timah (Persero) Tbk is a state-owned enterprise engaged primarily in tin mining and is listed on the Indonesia Stock Exchange.
Jakarta has a 41.12% share in Inalum, with the balance held by Nihon Asahan Aluminium, a consortium of Japanese investors. The joint venture is due to expire in October 2013.
Platts reported in August that NAA was keen to renew the contract and maintain a share in the alliance, although Jakarta made clear it was considering other options.
On Thursday, the Inalum source said the company's ownership change may unfold in phases. A yet-to-be-identified state entity was likely to initially acquire the Japanese share, before possibly divesting it, he said.
Inalum can produce about 250,000 mt/year of primary aluminum in Kuala Tanjung, Sumatra, typically using alumina sourced from Australia. The current JV contract requires a large portion of the output to be exported to Japan. NAA's shareholders comprise the Japanese government and 12 Japanese companies -- Sumitomo Chemical company Ltd., Sumitomo Shoji Kaisha Ltd., Nippon Light Metal Company Ltd., C Itoh & Co., Ltd., Sojitz Corp., Nichimen Co., Ltd., Showa Denko K.K., Marubeni Corporation, Mitsubishi Chemical Industries Ltd., Mitsubishi Corporation, Mitsui Aluminium Co. Ltd. and Mitsui & Co. Ltd.
Inalum recently inked alumina term contract purchase agreements with Glencore and Alakasa. The deals call for eighteen 22,000 mt parcels to be delivered each year to Kuala Tanjung port in Sumatra, priced as a percentage of LME aluminum. The contracts run from from April 2013 to March 2015.
Indonesia's state enterprises minister Dahlan Iskan was quoted by Antara on Thursday as saying that local firm PT Timah had bought a bauxite mine in Myanmar with plans to produce alumina for Inalum's consumption.
PT Timah (Persero) Tbk is a state-owned enterprise engaged primarily in tin mining and is listed on the Indonesia Stock Exchange.
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