Antam, BHP Billiton gets license to convert KP into CoW

JSX-listed state miner PT Aneka Tambang (Antam) and Anglo-Australian resources company BHP Billiton have secured a principal license from East Halmahera regency of North Maluku province to convert mining concession (KP) into contract of work (KK) for the development of nickel mining in the regency.

President Director of Antam Dedi Aditya Sumanagara said in Jakarta on Tuesday that the amount of funds to be invested by BHP Billiton as Antam's partner in the project was quite considerable.

?The investment remains possible to change, dependent on result of feasibility study,? he said.

"Early estimates showed that US$1billion would be needed to develop the ferronickel project, while another $2-3 billion would be needed to develop hydrometallurgical processing,? Corporate Secretary Bimo Budi Satriyo said in October 2007.

The project might be able to produce 30,000 tons per annum of nickel contained in ferronickel and 60,000 TPA of nickel metal, according to Antam

Both companies signed a heads of agreement (HoA) to jointly develop the project last February. (Bernard)