Antam, BHP to sign nickel project JV next week

IDX-listed state miner PT Aneka Tambang (Antam) and its partner Anglo-Australian resources company BHP Billiton will sign joint venture agreement (JVA) next week to develop nickel resources project in East Halmahera regency of North Maluku province.

?The JVA agreement will be signed on June 17, 2008,? Antam?s President Director Dedi Aditya Sumanegara said on Thursday during a parliamentary hearing, adding that Antam would have 50 percent stake in the project.

The project will develop ferronickel plant to produce ferronickel and hydrometallurgical processing plant to produce nickel metal and cobalt from a low-grade nickel ore, he said.

Currently the project is in the process of completing feasibility study, he said.

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.

Early estimates showed that US$1 billion would be needed to develop the ferronickel project, while another $2-3 billion would be needed to develop hydrometallurgical processing.

In Nov last year, Antam and BHP have secured a principal permit from East Halmahera regency of North Maluku province to obtain a contract of work (CoW) from a Mining Contract (KP). (Bernard)