Antam, Ferrostaal plan stainless steel plant
Friday, April 15 2016 - 03:02 AM WIB
IDX-listed mining firm PT Aneka Tambang Tbk (Antam) plans to team up with Germany?s Ferrostaal to develop a stainless steel plant in Pomalaa, Southeast Sulawesi.
Antam President Director Tedy Badrujaman said on Thursday that the stainless steel plant will be located near the company?s nickel processing plant so as to help create an integrated operation.
He said that Antam and Ferrostaal have been discussing the planned project since the past two years, and the two are serious about it, hoping to sign a pre-development agreement soon.
He said that Antam will only have a 25 percent stake in the project, with the majority 75 percent shares to be held by Ferrostaal. He added that Antam will be responsible in providing the nickel raw material and land requirement for the project, while financing will be the responsibility of Ferrostaal.
He explained that with a planned production capacity of 500,000 tons per year, the stainless steel plant will need about 40,000 tons of nickel supply. He added that Antam can produce about 27,000 tons of nickel per year, while Ferrostaal has nickel plant with capacity of 19,500 tons per year.
?We?ll start developing the project once the pre-development agreement has been signed. The feasibility study has been completed, and we?re serious with the project,? Tedy said, adding that in 5-10 years, Antam aims to increase its interest in the stainless steel plant to 40 percent.
Editing by Reiner Simanjuntak