Antam, Cronimet, Ferrostaal sign agreement on ferronickel project
Tuesday, April 19 2016 - 12:45 PM WIB
IDX-listed state owned general mining company PT Antam Tbk announced on Tuesday that it has signed a Project Development Agreement with German firms Cronimet Holding GmbH and Ferrostaal Industrial Projects GmbH to develop ferronickel production facilities in Pomalaa, Southeast Sulawesi.
The agreement was signed by Antam?s President Director Tedy Badrujman, Cronimet CEO Gunter Pilarsky, Ferrostaal Klaus Lesker during the Indonesia-Germany Business Forum attended by President Joko Widodo, who was on a state visit to the country, and Minister of Trader Thomas Lembong and Head of the National Investment Coordinating Board (BKPM) Franky Sibarani.
Tedy said: ?The project cooperation with Cronimet and Ferrostaal indicates Antam?s commitment to increasing stockholders? value. I believe this project, like other nickel-based projects such as the expansion project of Pomalaa ferronickel plant and the development project of Haltim ferronickel plant will also add the value of Antam?s enormous nickel resources in Indonesia. This is in line with the firm?s strategy of raising the value of its reserves through processing activities.?
Antam, Cronimet and Ferrostaal will study the possibility of developing Antam?s nickel deposit by building a ferronickel production facility in Pomalaa. After the result of the preliminary study has been obtained, the project is expected to process 1.85 million wet metric tons (wmt) of nickel ore per year into 19,500 metric tons of nickel in the form of ferronickel with a minimum nickel content of 15 percent.
Under the agreement, Antam will supply nickel ores as feedstock to the plant with a minimum nickel content of 1.6 percent. Antam will also benefit from the project through the utilization of existing infrastructures in Pomalaa and the handling of Operation & Maintenance of the ferronickel production facility.
Initial calculations estimate the value of the project at US$800 million. Antam is expected to have a 25 percent stake in the project, while Cronimet and Ferrostaal hold the rest, Antam said.
The project is part of Antam?s strategy of entering value-added processing activities in cooperation with world-class partners such as Cronimet and Ferrostaal. Cronimet has an extensive experience in in procuring and marketing products for stainless steel globally, including other logistics and other services needed by consumers. Meanwhile, Ferrostaaal is experienced in developing and implementing large-sale industrial plant, particularly in arranging the structure of project scheme (including EPC contract and arranging Operations & Maintenance contract).
Editing by Johannes Simbolon