Antam and PJB start negotiation on loan scheme for FeNi III

Publicly listed mining company PT Aneka Tambang (PT Antam) and state owned electricity company PLN?s subsidiary PT Pembangkit Listrik Jawa-Bali (PJB) are negotiating the loan scheme for the construction of a power plant which will be built as part of the development of Antam?s third ferronickel smelting plant FeNI III, Bisnis Indonesia reported on Monday.

A source told the daily that negotiations were now underway between Antam and PJB to determine financial scheme for the power plant which would be built to supply the power needs of Antam?s third smelting plant.

Antam plans to build its third smelting plant as part of its expansion program. The company initially planned to build the power plant for the smelting plant with its own financial sources. But due to difficulty to obtain loans, Antam assigned PJB to take over the power project.

When asked to comment, Antam?s public relations consultant Cameron Tough refused to comment.

The source said that the funds needed for the construction of the smelting plant would reach between US$220 million and US$230 million, while those for the power plant would reach about US$60 million.

Antam plans to issue bonds worth US$150 million to partly finance the smelting plant. IKB Hermes of Germany has also offered to provide loans to finance the smelting plant. But Antam has yet to decide which of the financial schemes that will be used. (*)