Indonesian government to take full control of Inalum

The Indonesian government plans to take full control of aluminum producer PT Indonesia Asahan Aluminium (Inalum), led by state metal and mineral mining firm PT Aneka Tambang (Antam).

Enterprises Minister Mustafa Abubakar said about $800M was required for the takeover, which will come from Antam’s reserves, reports the Jakarta Post.

Mustafa said the government wanted 100% control of Inalum, ending a contract signed in 1976 with Nippon Asahan Aluminum Co (NAA), a consortium of 12 Japanese firms, under which Indonesia owned a 41% stake, with the remainder owned by NAA.

Inalum, located in North Sumatra, produced 254kt of aluminum ingots last year, up 3.4% from 245, 526t in 2008.

About 60% of Inalum’s output is exported to Japan, with the rest sold to the domestic packaging and transportation industries.