Aluminium smelter for Indonesia

Press, Volume CXIII, Issue 33413, 20 December 1973, Page 12

Aluminium smelter for Indonesia

C.V.Z. Press Association—Copyright) TOKYO, December 16. Five .Japanese aluminium smelters have reached basic agreement with a visiting Indonesian delegation on the Asahan project in Sumatra. Indonesia-

The large-scale project, I tackled jointly by the five! aluminium smelters and two!

I U.S. firms, calls for constructing a hydro electric j plant and an aluminium smelter, the largest in SouthEast Asia, in the basin of the Asahan River. A power plant with a capacity of 480,000 kilowatts will be built at a cost of sl9om. It will be nationalised 30 years after the start of power generation. An aluminium smelter capable of producing 225,000 tons annually will also be constructed at a cost of s3oom. The power plant and smelter will be completed six or seven years after a formal contract is signed between Japan and Indonesia. The focus of negotiations was on how soon the power plant would be nationalised. The Japanese insisted that it should not be nationalised until 50 years later, but an Indonesian proposal for 30 years was accepted finally ion condition that the power plant be placed under Indonesian control after full depreciation, and that electricity be supplied to the aluminum smelter at cost even after nationalisation.