Antam, Inco close to sign SE. Sulawesi nickel agreement

State miner PT. Aneka Tambang Tbk (Antam) and Sulawesi-based nickel miner PT. Inco Tbk. is close to sign agreement to joint development of the latter?s 70,000 hectare-nickel concession area in Pomalaa, Kolaka, Southeast Sulawesi, an Antam executive said.

?There are minor details left to be resolved, but I?m optimistic the agreement could be sealed in January,? said Antam president Deddy Aditya Sumanegara in an interview with Petromindo.Com Saturday.

Under the agreement, Antam will buy Inco?s nickel ore produced from its Pomalaa concession and the ore would be processed at Antam?s third nickel smelter FeNi III which is scheduled to come into completion in 2005 or 2006.

Deddy did not disclose the volume of Inco?s ore to be processed in FeNi III smelter. ?All I can say now is that Antam will buy Inco?s Pomalaa ore at cost plus margins,? he said.

The Pomalaa nickel mining area, which obtained by Inco in 1970, has caused controversies. The local government has demanded Inco to develop the area but the latter cannot develop the concession on its own due to the high cost in developing the area, which is located some 300 kilometers from its main nickel operation in Soroako, South Sulawesi and much closer to Antam?s FeNi III smelter location.(alex)