Antam cancels Martabe acquisition plan

IDX-listed state nickel mining firm PT.Aneka Tambang Tbk most likely will not proceed with the plan to acquire 10 percent stake at Oz Minerals? Martabe gold project in North Sumatra as the price Oz offered is considered too high.

Antam CEO Alwinsyah Loebis told reporters on Wednesday that the financial turmoil has caused the US$66.5 million price earlier agreed between the two companies became ?too high?.

?We?ll make our formal decision by the end of the month,? Loebis said.

Antam signed an MoU to buy 10 percent stake at Martabe for $66.5 million with Oz in July this year. The MoU gave Antam right to increase share in the project to up to 25 percent.

Antam had been hit hard by the financial crises and metal demand melt down as its prices of its main products such as ferronickel, nickel ore and bauxite had plunged sharply over the past few months. (bernard/godang)