Antam, BHP to spend at least $1b to develop Halmahera nickel project

JSX-listed state miner PT.Aneka Tambang Tbk (Antam) said its planned nickel mining joint venture operations in Halmahera, North Maluku, with Anglo-Australian resources company BHP Billiton might be able to produce 30,000 tonnes per annum of nickel contained in ferronickel and 60,000 TPA of nickel metal.

Corporate Secretary Bimo Budi Satriyo told reporters last week said construction of the ferronickel project, which the company referred to as Ferronickel IV project, will start in 2012, with completion seen in 2015.

Bimo said currently, both companies are negotiating terms and conditions for the formation of the 50:50 JV that would be completed in 2007.

Both companies signed HoA to jointly develop Antam?s extensive nickel laterite resource on Halmahera Island last February.

Bimo added that aside from ferronickel, the JV would also investigate possibility to conduct hydrometallurgical operations to turn low-grade nickel ore into nickel metal and cobalt. He said the resources at Halmahera deposit has the potential to produce 60,000 tonnes of nickel metal per annum with cobalt as by product, adding that hydrometallurgical operations would be carried out after ferronickel production had been established.

Bimo said the partnership would conduct feasibility study on the project within the next 3-4 years.

Early estimates showed that US$1 billion would be needed to develop the ferronicfkel project, while another $2-3 billion would be needed to develop hydrometallurgical processing,? he said. (bernard/denny)