Thursday, July 23, 2009

Bakrie to build copper smelter

PT Multicapital, a company controlled by Bakrie Group, plans to build copper smelter in West Nusa Tenggara in a JV with PT Daerah Maju Bersaing.
The copper smelter is part of a JV agreement between Multicapital and PT Daerah Maju Bersaing, a company established by local administrations in West Nusa Tenggara, to purchase 10% shares of gold and copper producer PT Newmont Nusa Tenggara.
Others are US$4 million guaranteed payment from Multicapital to DMB per year starting next year even if Newmont doesn't pay dividend. Multicapital will have 75% shares in the JV, PT Multi Daerah Bersaing, while DMB with 25%. Multicapital will finance the acquisition of 10% NNT shares for US$391 million.
The newly deliberated Mineral and Coal Law obliges mining companies to process locally the mineral ores. Some groups have announced plans to build copper smelters in Kalimantan and Sulawesi.

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