by Staff Writers
Jakarta (AFP) Aug 30, 2012
Three Chinese firms will invest up to $8.6 billion in Indonesian smelters, Jakarta's industry minister said Thursday, as a ban on the export of raw minerals from Southeast Asia's biggest nation looms.
"Oriental Mining and Minerals Resources and Rui Tong Investment will invest $1.5 billion in direct reduced iron plants with a capacity of six million tonnes," state-run news agency Antara reported Mohamad Hidayat as saying.
"Beijing Shuangzhongli Investment Management will invest $7.1 billion in alumina refining plants with a production capacity of 1.8 million tonnes", the minister added.
The investment comes after a string of similar deals as China deepens its presence in Indonesia before the resource-rich nation implements a blanket ban on ore exports, slated for 2014.
Indonesia has in the past year tightened protectionist policies in the mining sector, obliging foreigners with new mining permits to divest a controlling stake in assets after 10 years of production.
It also imposed a 20 percent tax on raw mineral exports, and obliged ore exporters to invest in Indonesian smelters.
Hidayat said the $8.6 billion investment would create 46,000 new jobs for Indonesians.
A subsidiary of the government-backed Aluminum Corporation of China, or Chalco, this week signed a deal with Indonesia's Indonusa Dwitama to develop a refinery for bauxite, the raw material for aluminium.
Earlier this month, Bosai Minerals Group, China's largest bauxite producer, announced a $1 billion investment to build a similar plant in Indonesia.
Global Trade News
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Germany's Merkel due in China for eurozone talks
Beijing (AFP) Aug 30, 2012
German leader Angela Merkel was due to hold top-level talks Thursday on her second visit to China this year, with Europe's debt crisis taking centre stage as it begins to drag on the two global powers. Leading several ministers and a high-powered business delegation, Merkel will meet Premier Wen Jiabao in Beijing during the two-day trip and travel to an assembly plant of European planemaker ... read more
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