Antam is seeking foreign loans to finance new ferro nickel plant

Publicly listed general mining company PT Aneka Tambang (Antam) is seeking to obtain loan of about US$120 million from German bank IKB Hermes to finance the construction of its third ferro nickel plant (FeNi III) in Pomalaa, Southeast Sulawesi, Koran Tempo daily reported on Friday.

The company?s president Dedy Aditya Sumanegara said in Jakarta on Thursday that the general mining company expected also to obtain additional loans from a syndication of local banks to finance the US$220 million project.

?Tessag INA from Germany has been appointed as the arranger,? he told reporters following the company?s annual shareholders meeting.

Separately the company?s corporate secretary Dohar Siergar said that Tessag, besides as financial arranger, would also act as the contractor of the project. ?We hope the construction of the new ferro nickel plant could be realized this year,? he added.

He said Brookehand Inc of Britain had recently completed its due diligence audit on Antam operations as part of the preconditions which must be met by the company to get the loan. ?We are now at the stage of discussing the financial clause of the debts,? he added.

He hoped that the construction of the new plant, which has been delayed for several times, could be started before the end of this year.

The new plant, which was originally scheduled for operation by 2003, would be able to increase the production capacity of the company?s ferro nickel to 24,000 tons per year from 11,000 tons at present.(*)