Antam, Inco sign MoU to jointly develop S.E Sulawesi nickel reserves

Publicly listed state miner PT. Aneka Tambang Tbk (Antam) announced on Monday that it and PT International Nickel Indonesia Tbk (Inco), a subsidiary of Canada?s Inco Limited had entered into a Memorandum of Understanding (MoU) to form a joint venture to develop nickel reserves in East Pomalaa, Kolaka Regency, Southeast Sulawesi.

The MoU was signed on Sunday by the top executives of the two companies in Pomalaa and witnessed by Minister of Energy and Mineral Resources Purnomo Yusgiantoro. Antam?s statement said the MoU wouldl be followed by a more detailed agreement.

Under the MoU, Antam and Inco will jointly develop approximately 10 million tonnes of nickel ore in Southeast Sulawesi, on a tenement held by Inco that borders Antam's Pomalaa mine and smelter facility. The ore will be smelted at Antam's smelting facility.

?This MOU confirms the commitment of Inco and Antam to jointly develop parts of Inco's concession area in East Pomalaa. This project will enable Inco to fulfill its Contract of Work commitment as well as to supply nickel ore to Antam at an economical price and to provide royalties on the nickel ore as a revenue for Kolaka regency, which in its entirety constitutes a win-win solution,? said EW Hodkin, Inco?s president. (alex)