Antam gives loan to its West Papua nickel unit

Jakarta, Sydney-listed state mining firm PT Aneka Tambang Tbk (Antam) said on Friday that it has given a loan worth Rp 38.6 billion to its wholly owned unit PT Gag Nickel to develop nickel reserves on Gag Island, West Papua.

The company said in a statement that it is currently doing general survey, exploration and some studies including mine engineering, mine design, mineral resource & reserve and first phase feasibility studies.

The company did not give further details

Antam holds 100 percent shares of the Gag Island nickel concession after Anglo-Australian resources giant BHP Billiton transferred its 75 percent shares in the project to Antam in 2008.

BHP transferred its whole shares in PT. Gag Nikel to Antam following its 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 the project, BHP Billiton said in 2008.

Earlier reports said that Gag Island has a nickel resource of 216 million tons.

After the BHP Billiton pullout, Antam announced in May, 2009 it was looking for new partner to develop the mine. (denny)