Antam has options to increase ownership in Weda Bay
Thursday, January 9 2003 - 02:59 AM WIB
Antam?s investors relations manager Winardi said in Jakarta on Wednesday that Antam had not yet injected cash in PT Weda Bay whose 90 percent stake is controlled by Strand Minerals Pte. Ltd. "The current 10 percent ownership was given in exchange of contracts of works for the concession areas that will be operated by PT Weda," he added.
"Our current investment in PT Weda is not in the form of cash but in the form of contracts of works," he said.
Winardi also explained that Antam will also cooperate with Falcon Bridge to develop its nickel concession area in Tanjung Buli. "Falcon has just completed the due diligence audit on the prospect of the Tanjung Buli concession area. Antam still waits for Falcon?s proposal for further development of the concession area," he said.
PT Weda Bay Nickel recently said that it has cancelled its plan to invest about US$1 billion in its nickel mining project due to uncertainty in the status of its massive nickel concession area in Halmahera, Maluku.
At least 150 mining companies have to stop their activities because their concessions area overlap with protected forests. Three of the companies, PT Galuh Cempaka, PT Jorong Barutama Greston and PT Barisan Tropical Mining have been allowed to continue their mining activities after a study concluded that their concession areas are located outside protected forests.
The government has earlier promised to allow three other companies PT Weda Bay, PT Nusa Halmahera Mineral and PT Gag Nikel to resume their mining activities after their status of their locations are changed into productive forests. But no decision have been made to allow the resumption of the three companies? projects. (*)