Indonesia State miners may terminate $831m smelter contract - director
JAKARTA – A unit of Indonesian state miner MIND ID could scrap a contract to build an $831.5-million alumina smelter due to a lack of agreement with contractors, its director said on Tuesday, noting there was still a target to finish the project by 2024.
The contract could be terminated if the contractors had no agreement by October, MIND ID director Danny Praditya, told a parliamentary hearing.
Borneo Alumina Indonesia, a joint venture between miners Aneka Tambang (Antam) and Inalum - both units of MIND ID - is the project owner of the smelter, situated in Mempawah, in West Kalimantan province on Borneo island
The JV had since earlier this year reported a dispute between its engineering, procurement, and construction contractors, state firm PT Pembangunan Perumahan and China Aluminium International Engineering (CHALIECO), over work items and contract value.
"Until now there has been a 16-month delay, which we calculate would mean potential revenue loss of $450-million," Darwin Saleh, a director at Borneo Alumina, told the hearing.
The completion of the project, which was contracted in 2020, was originally targeted for 2022. The dispute has already pushed back the target to 2024.
Most recently, the contractors have asked for the deadline to be further pushed to 2025, Praditya said, adding that Borneo Alumina has rejected this and demanded that the contractors stuck to their last agreements on timeline.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation