Antam, Jindal in nickel, stainless steel JV

IDX-listed state miner PT.Aneka Tambang (Antam) and Indian firm Jindal Stainless Limited on Monday had signed a joint venture agreement to develop a nickel smelting and stainless steel facility in North Konawe, South East Sulawesi.

According to a joint statement released in Bombay Stock Exchange on Monday, Antam will have 55 percent interest in the project, with Jindal owning the balance.

The project will have initial capacity of 20,000 tonnes per annum of contained nickel in ferronickel and around 250,000 TPA of stainless steel, mainly the high quality 300 Series, the statement said. Final end product may be stainless steel slabs or stainless steel long products.

The integrated project will process nickel ore from Antam?s Mandiodo concession, which has average nickel grade of 1.5 percent.

Total investment is estimated at US$700 million, the statement said. Construction is expected to start in 2009, with completion seen in 2011.(alex)