Antam expects to build third ferronickel plant next March

Diversified mining firm PT Aneka Tambang (Antam) will start building its third ferronickel melting plant next March if the company and its lenders can soon reach final agreement on the project funding, Antam president director D. Aditya Sumanagara said on Monday as reported by Bisnis Indonesia daily.

A German consortium led by IKB Hermes and Indonesia?s state-owned Bank Mandiri had planned to provide Antam with loans respectively amounting to US$255 million and $75 million.

Negotiations with the lenders were continuing, focusing on collaterals and term & condition of their loans, Aditya said. But he did not disclose in which month their negotiations could be concluded.

The ferronickel plant, FeNi III which is to be located in Pomalaa in Southeast Sulawesi, requires between $350 million and $380 million, Aditya said.

The plant was planned to have annual production capacity of 20,000 tons of ferronickel.

Antam is majority owned by the government, and is listed on the Jakarta Stock Exchange and an Australian bourse. (*)