Antam Tayan Chemical Grade Alumina Project, Indonesia
Indonesian state-owned metals and mining company PT Aneka Tambang, also known as PT Antam, constructed 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 produces a variety of alumina grades such as calcined and commodity products.
Construction of the plant started on 11 April 2011 and commissioning began in October 2013. Commercial operations started in February 2015. The plant produces 300,000t of chemical grade alumina a year. SDK provided the necessary technology for alumina production at the plant.
The Tayan CGA plant was built by PT Indonesia Chemical Alumina (ICA), a joint venture between Antam (80%) and Japanese Showa Denko K K (SDK - 20%).
SDK uses 200,000t (66.67%) of CGA from the plant, while the remaining 100,000t is marketed in Indonesia and exported to Japan and other countries. The plant generates revenues of approximately $200m a year.
The $490m project was funded by the two stakeholders of ICA and through external financing. It also received loan support from the Japan Bank for International Cooperation (JBIC) and several other commercial banks. The debt guarantee for the loans was provided by Japan Oil, Gas and Metals National Corporation (JOGMEC).
Alumina is an inorganic compound produced by processing bauxite. Bauxite is supplied by Antam, which owns a mining right to the raw material. The new plant has added 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 biggest bauxite reserves (13.5 million wet metric tonnes) 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, 1Mt/y Mempawah smelter-grade alumina (SGA) and the Tayan CGA plant.
SDK 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 was 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 six million tonnes. The Tayan CGA project has a positive impact on the non-metallurgical grade alumina market.