Antam expects to sign loan agreement in October

Publicly listed general mining company PT Aneka Tambang (Antam) expects it will be able to raise US$120 million in export credit from the Germany-based IKB Deutsche Industriebank in October this year, a local daily reported on Friday.

?We hope to sign the loan agreement in October or November this year,? the company?s investor relations manager M. Kartobi told Koran Tempo.

Kartobi said that the mining company was still waiting for the final agreement from the German banks about the loan, which would be guaranteed by other German export credit agency Hernes.

He said that the loans would be used to finance the construction of the company?s third nickel plant (FeNi III) in Pomalaa, Southeast Sulawesi.

According to Kartobi, the $220 million nickel plant would be built later this year, with Tessag INA acting both s the contractor and its financial arranger. ?We hope the project will be completed within 28 months,? he added.

The new plant, which was originally scheduled for operation by 2003, would be able to increase the production capacity of the company?s ferro nickel to 24,000 tons per year from 11,000 tons at present.

Kartobi also explained that the company?s plan to issue bonds worth $150 million had nothing to do with the financing of the new nickel plant. According to him, the funds which would be in the form of foreign currencies and local currency would be used for Tayan alumina project.(*)