Aneka Tambang needs US$250 million to build new ferro nickel plant

Publicly listed general mining company PT Aneka Tambang needs at least US$250 million to finance the construction of its third ferro nickel plant in Pomalaa, Southeast Sulawesi, according to the company's executive.

The company's corporate secretary Dohar Siregar said in Jakarta on Thursday that the mining company was still negotiating with local and international financial institutions to finance the construction of the FeNi III project.

"If we could get the funding for the project during the fourth quarter of this year, the construction will go ahead early next year," he told Bisnis Indonesia.

The construction of the company's third ferro nickel plant has been delayed for several times due difficulties in obtaining the funding of the project. The first tender which was opened in 1998 did not run as expected and should be delayed.

The tender then opened again in May 2000 but it was again cancelled as the preferred bidder Mitusi and Co pulled out due to its financial difficulties.

Dohar said that the tender for the engineering, procurement and construction of the project was relaunched recently with bidders including Mitusi and Co, and Tessagina Group of Germany. "We hope we will be able to announce the winner of the tender before the end of this year and could start the project early next year," Dohar added.

The construction of the new plant is scheduled for completion in 2003, will be able to increase the company's production capacity to 24,000 tons per year from 11,000 tons at present.

The company operates two plants at present, each with a production capacity of 5,500 tons. (*)