Jakarta, October 8th, 2012 – Following PT AGIS Tbk plans in its diversification efforts into the mining industry. PT AGIS Tbk through its subsidiary, PT Agis Resources, has signed a Cooperation Agreement with owner of approximately 10 hectares land in Semarang, Central Java. This Cooperation Agreement is a follow up to the MoU (Memorandum of Understanding) signed previously on July. The main point in this Cooperation Agreement is to jointly invest to build and operate the steel smelting plant.
A Joint Venture Company will be formed to facilitate the development plan and the operational of the Steel Smelting Plant. PT Agis Resources will gain control 70% (seventy percent) the ownership of the newly formed Joint Venture Company, where the remaining 30% (thirty percent) will be held by the land owner.
The Smelting Plant is planned to be built in Semarang, Central Java and has production capacity up to 300,000 tons (three hundreds thousands tons) per year.
Currently, the Company is conducting legal due diligence, particularly regarding land status and licensing-related to this cooperation.