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Antam Tayan Chemical Grade Alumina Project, Indonesia

Key Data

The Indonesian state-owned metals and mining company PT Aneka Tambang, also known as PT Antam, is constructing a new chemical grade alumina (CGA) project on a 36,410ha site in the Sanggau Regency, Tayan in the province of West Kalimantan. The plant will produce a variety of alumina grades such as calcined and commodity products.

Construction of the plant started in April 2011 and the project is scheduled for completion in December 2013. Commercial production is expected to begin in January 2014. SDK will provide the necessary technology for alumina production at the plant.


The Tayan CGA plant is being built by PT Indonesia Chemical Alumina (ICA), a joint venture between Antam (80%) and Japanese Showa Denko K.K. (SDK - 20%).

The plant will produce 300,000t of chemical grade alumina per year.

SDK will use 200,000t (66.67%) of CGA from the plant while the remaining 100,000t will be marketed in Indonesia and exported to Japan and other countries. When fully operational, the plant is expected to generate revenues of $200m per year. It is also expected to have a positive impact on the local economy.

"The CGA plant will be built by PT Indonesia Chemical Alumina."

Antam financing

The project is estimated to cost about ¥40bn ($450m). It will be funded by the two stakeholders of ICA and through external financing. The project also received loan support from the Japan Bank for International Cooperation (JBIC) and several other commercial banks. The debt guarantee for the loans is being provided by Japan Oil, Gas and Metals National Corporation (JOGMEC).


Alumina is an inorganic compound produced by processing bauxite. Bauxite will be supplied by Antam which owns a mining right to the raw material. The new plant will add considerable value to the bauxite reserves of Antam.


PT Indonesia Chemical Alumina was established in February 2007 with a capital of $3.5m, by Antam (65%), Showa Denko (20%) and Marubeni Corporation (15%). In August 2010, Antam purchased Marubeni's stake in ICA for $525,000.

Antam has its largest bauxite reserves (13.5m wet metric tons) in Tayan, exported to Japan and China. The company is establishing joint venture alumina projects as part of its strategy to explore the downstream markets. The company is building two alumina factories in West Kalimantan: a $1bn, 1m mt/y Mempawah smelter grade alumina (SGA) plant to be operational in 2014; and the Tayan CGA plant.

"Antam has its largest bauxite reserves in Tayan, exported to Japan and China."

SDK currently produces chemical grade alumina and aluminium hydrate from bauxite ore at its Yokohama plant in Japan, for supply in the domestic market. The plant, however, will be closed by 2015 to meet SDK's plans to cease bauxite residue disposal into the sea.

The company, therefore, ventured into the 200,000t/y alumina project to meet the requirements of its existing customers from 2014.


In May 2010, PT ICA selected WIKA Group, a consortium of companies led by Tsukishima Kikai, for the construction of the Tayan CGA factory.

The engineering, procurement and construction (EPC) contract was awarded to a consortium of Tsukishima Kikai, PT Wijaya Karya and PT Nusantara Energi Abadi in August 2010. The EPC contract will be effective from the date of financial closure.

Chemical alumina market

Chemical grade alumina is used as a raw material for several industrial products such as polish, paints, abrasive products, refractories, toothpaste, building materials, ceramics and lighting. It is also used to make electronic materials such as LCD glass materials and IC packaging.

Aluminium hydroxide is used as a coagulant in water purification process. It is an intermediate product obtained during bauxite processing.

The global market for the chemical alumina in 2008 was estimated to be 6m tons. The Tayan CGA project is expected to have a positive impact on the non-metallurgical grade alumina market.

The Tayan plant will produce several alumina grades including commodity and calcined products.
Alumina is an inorganic compound used for making abrasive products.
The chemical structure of the aluminium oxide or alumina.
Antam will supply the bauxite for the ICA plant.