PT Merdeka Copper Gold Tbk (MDKA) is preparing a capital expenditure (Capex) of US$290 million this year, mostly for initial investment in the Acid, Iron, Metal (AIM) plant project.

Merdeka Copper Gold Vice President Director Simon James Milroy said the company had signed a joint venture agreement (JVA) with Eternal Tsingshan Group Limited (Tsingshan) and its respective affiliates.

"Furthermore, the parties established a joint venture company incorporated in Indonesia, namely PT Merdeka Tsingshan Indonesia (MTI) to run and operate the AIM project, of which 80% is owned by MDKA and 20% by Tsingshan," he said on Thursday (27/5).

According to Simon, the AIM project will start construction in the second quarter of 2021. The company targets the plant to start production in the fourth quarter of 2022. When completed, the AIM factory can increase the company's revenue to US$170 million per year for more than 20 years.

"This AIM pro