UPDATE 1-Malaysia's Press Metal inks alumina refinery JV in Indonesia push

(Updates with background, deal details and CEO comments in paragraphs 2,3 and 6) Sept 18 (Reuters) - Malaysia's Press Metal Aluminium PMET.KL on Wednesday said it is setting up a joint venture with three Indonesian firms for an alumina refinery plant with the total cost for the first phase being $750 million. Last month, a supply shortage had been flagged in China's alumina inventories, a raw material for aluminium, triggering concerns about the future supply of aluminium amid high demand. The Malaysian aluminium firm has signed an agreement with Indonesian companies - PT Alakasa Alumina Refineri, PT Dinamika Sejahtera Mandiri and PT Kalimantan Alumina Nusantara. Under the joint venture, PT Kalimantan Alumina Nusantara will establish and operate an integrated alumina refinery plant, power plant, jetty and supporting infrastructure in Indonesia. Press Metal, Southeast Asia's largest aluminium smelter, will also take an 80% stake in PT Kalimantan Alumina Nusantara for 1.04 billion ringgit ($245.17 million). "With a long-term offtake agreement expected to commence once the refinery is operational, we anticipate cost savings that will further optimise our overall operations,” Press Metal Group CEO Tan Sri Paul Koon said. ($1 = 4.2420 ringgit) (Reporting by Sneha Kumar; Editing by Mrigank Dhaniwala) (([email protected];))