Antam and UC RUSAL Sign a Heads of Agreement to Develop Bauxite Deposit in Indonesia

Antam and UC RUSAL will explore possibilities to develop bauxite deposits and build a smelter grade alumina processing plant in West Kalimantan, Indonesia. Following the outcome of a feasibility study, the proposed project may process 3.6 million wet metric tons (wmt) of washed bauxite per year into 1.2 million tonnes of smelter grade alumina per year. The initial estimated project cost may be about US$1.2-1.5 billion and Antam is likely to take a 49% stake in this project with UC RUSAL owning the remaining 51%. Feasibility studies will be conducted to determine the investment cost, location, technology, environment and other important aspects prior to the initial phase of development. The project is part of Antam's strategy to move into value-adding processing activities together with world class partners, such as UC RUSAL, which is the world's largest alumina and aluminum producer.