Showa Denko quits joint venture company PT Indonesia Chemical Alumina with Antam

<p>The partnership of Indonesia&rsquo;s diversified mining company PT Aneka Tambang (Antam) and Japanese Showa Denko K.K. has come to a breaking point as the latter wants to quit the joint venture company, PT Indonesia Chemical Alumina, while Antam wants to divest some of its shares.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/antam1.jpg" alt="News" width="640" height="225" /></p> <p>The joint venture company owned a chemical grade alumina (CGA) plant in Sanggau, West Kalimantan that has been in operation since 2014. Total investment for the plant, according to the Investment Coordinating Board (BKPM), reached US$352.2 million.</p> <p>Antam owned 80% of PT Indonesia Chemical Alumina shares while the rest was owned by Showa Denko. Earlier also Antam offered to divest some of the shares to Showa Denko that could not be materialized.</p> <p>In July, Showa Denko K.K announced its willingness to quit the joint venture and had written a 10 billion yen (US$90.3 million) loss in investment.&nbsp;However, none of the companies divulged any details of the problem they faced while running the joint venture.</p> <p>{googleAdsense}</p> <p>"After some of terms and conditions were not met, Showa Denko decided to quit, but it had to follow the process. There must be replacement in the joint venture," <span>Antam Finance Director Dimas Wikan Pramudhito</span>&nbsp;explained at Indonesia Stock Exchange (IDX) on Monday.&nbsp;</p> <p>Since, the joint venture is now broken, both Antam and Showa Denko have to find themselves a third party buyer to take over Showa Denko&rsquo;s shares and buy some shares owned by Antam. &nbsp;</p> <p>&nbsp;</p>