Antam asked to explain debt disbursement

The government as the majority shareholder of PT Aneka Tambang (Antam) general mine company has asked the company?s management to explain the planned disbursement of the debts worth between US$350 million and $360 million from IKB Hermes of Germany during an annual and extra-ordinary meeting in June, Koran Tempo reported on Thursday.

Deputy Minister for State Enterprises Roes Ariwijaya said that the company had tried to obtain debts from IKB Hermes to finance the construction of its third nickel processing plant, which would cost the company at least US$380 million.

He said that it was therefore important for the management to inform the shareholders about the debt plan to raise the debts from the German institution during the upcoming extra-ordinary meeting. "If there is a problem in obtaining the debts, the shareholders will suggest the company to seek another financing alternatives," he added.

As earlier reported, Antam planned to raise export credits from IKB Hermes of Germany to finance the construction of its third nickel processing plant, FeNi III. Antam also planned to raise debts from Bank Mandiri as additional funds to finance the project.

If there is a problem in obtaining the debt from Hermes, the company will seek another alternatives such as seeking debts of up to US$125 million from Bank Mandiri and by issuing bonds worth US$60 million as well as by seeking debts from contractors.(*)