Antam, INCO resume talks on joint venture

State mining company Aneka Tambang Tbk (Antam) and nickel miner PT International Nickel Indonesia Tbk (INCO) on Wednesday resumed negotiations on forming a joint venture to develop INCO?s nickel resources in Pomalaa, South Sulawesi.

A source close to the companies told Petromindo.com the two publicly listed firms were determined to soon narrow their differences and ink an agreement on the creation of the joint venture. The two sides held their first talks about that plan in February.

?They are looking to signing an agreement as soon as possible,? the source said.

INCO had initially planned to develop a nickel mine in Pomalaa, but it suspended its plan because the area is too far from its huge smelter and nickel mine in Soroako, also in South Sulawesi.

By cooperating with Antam, the firm can use Antam?s FeNiI nickel smelter in South Sulawesi. The facility is planned to start production by 2005.

Antam is 65 percent owned by the Indonesian government, while INCO is a subsidiary of a Canadian mining giant, Inco Limited. (godang)