Japan Consortium to Renew Asahan Aluminium Project Contract

Japanese consortium joining Asahan Aluminium smelting project in Indonesia will start negotiation in the month on continuation after the current contract 30 years term since November 1983. The participants will conclude the negotiation by October 2010 for business organization in and after November 2013.

Asahan Aluminium project started with support by Japanese and Indonesian governments. Japanese prime minister Yukio Hatoyama discussed on the matter with Indonesian president Yudoyono in December. Mr. Hatoyama asked Indonesian government’s cooperation for the project while Mr. Yudoyono showed intention for cooperation with the participating companies. Japanese minister Masayuki Naoshima of Economy, Trade and Industry met with Indonesian industry minister Hidayat on the matter.

The consortium starts the negotiation in the month in Indonesia. Japanese party is willing to keep the participation to secure aluminium ingot stably. Japanese government will support the attempt.

Asahan Aluminium project started the operation in November 1983. Under the contract, Japanese party imports 150,000 tonnes per year from the smelter with 225,000 tonnes of output capacity. Japanese party has around 59% interest in the project with around 41% share by Indonesian government.