An Indonesian company is selling its aluminum ore for $50 a tonne to a Chinese buyer who wants to build an aluminum factory in Indonesia.
The Indonesian company, Apotex, said in a statement on Tuesday that it has agreed to buy 2.6 million tonnes of ore from the Philippines and sell it for about $US160 a tonme, or about $100 a ton.
The Philippines, a former British colony, has long enjoyed an interest in mining, particularly from the country’s mineral wealth.
The company is working with a Chinese partner to mine the ore in a project that will involve up to 1,500 people and cost $US1 billion ($US1.4 billion).
The company said it had signed a contract with the Philippine state-owned company Pampanga.
Pampanga is a joint venture between the Philippine government and the China Development Bank.
It has a $US20 billion ($24 billion) investment programme to develop Indonesia.APotex said in the statement it is “pleased” to be working with the Philippines to develop the project.
The Philippine government had previously said it was interested in developing its own aluminum, which has a high melting point, but had not yet made any concrete plans for its future.