Antam fully owns Papua nickel concession following BHP exit

IDX-listed state miner PT.Aneka Tambang Tbk. (Antam) now holds 100 percent shares in Gag Island nickel concession in West Papua after giant resources firm BHP Billiton transferred its 75 percent shares in the project to Antam.

BHP transferred its 75 percent shares in PT.Gag Nikel to Antam following decision in November 2008 to end a study into integrated nickel development in Eastern Indonesia.

The study has not been able to identify a business case which would support an investment in this opportunity. Initially a resource at Gag Island was being evaluated and then a second resource at Buli in Halmahera was included following a conditional agreement to form a joint venture alliance with Antam.

The agreement with PT Antam Tbk was conditional on obtaining a Contract of Work (CoW) for the Buli resource by 31 October 2008 which has not been achieved. BHP Billiton has therefore decided to terminate the agreement with PT Antam Tbk. As a consequence of terminating the integrated study, BHP Billiton decided not to pursue a standalone development at Gag Island.

?Following BHP Billiton decision, BHP Billiton has transferred its interest in BHP Asia Pacific Nickel Pty. Ltd. to Antam. Following the share transfer, BHP Asia Pacific Nickel Pty. Ltd. has changed its name to Asia Pacific Nickel Pty,? Antam said. (alex).