JAKARTA (Yosefardi) – Indonesia’s state-owned fertilizer maker, PT Pupuk Kaltim, join forces with Jordan’s mining firm, Jordan Phosphate Mines Company (JMPC), to build phosphate and sulphate plants in Bontang, East Kalimantan, with investment cost of US$300 million.
Both parties had in Wednesday (Feb 26) signed a jont venture agreement (JVA) under which Pupuk Kaltim will hold 60% ownership interest on JV.
PT Pupuk Indonesia, Pupuk Kaltim, and JMPC had in 2010 built three fertilizer plants with investment cost of US$900 million. That three plants are located in Gresik (East Java) and Tanjung Api-api (South Sumatra).
Jakarta Post reported, at present, Indonesia imports a sizeable volume of phosphate from Jordan each year.
The new plants will produce 200,000 tons of phosphate acid and 600,000 tons of sulphate acid, according to a statement released by PT Pupuk Kaltim.
As found on its website, JMPC has established PT Petro Jordan Abadi Company in Indonesia in partnership with the Indonesian Petrokimia Gresik Company, to produce phosphoric acid using phosphate from the Jordan Phosphate Mines Company.
The company owns 50% of the joint venture. Production is expected to begin in the middle of 2014.