Antam kicks off the construction of FeNi Halmahera Timur

State owned gold and nickel company PT Aneka Tambang (Antam) Tbk has started the construction of its major ferronickel project in Halmahera Timur (FeNi Haltim) in North Maluku, worth US$1.6 billion.

President Director of Antam, Alwinsyah Lubis, said the FeNi Haltim project is the second major project of the company this year, after Chemical Grade Alumina (CGA) Tayan which commenced in April this year.

Alwinsyah Lubis said the FeNi Halmahera Timur project will have a capacity to produce 27,000 tonnes of nickel-in-matte, with commissioning operation scheduled for end of 2014. The project is developed by Antam?s wholly owned subsidiary PT Feni Haltim (FHT).

Of the $1.6 billion investment to develop the project, around $600 million will be set aside to develop a power plant with capacity of 275 megawatt (MW).

Antam has set up strategic alliance with PLN to develop and manage the power plan under a long-term contract supply of 30 years. The power plan will be developed, operated and owned by PLN.

The ceremony to kick of the construction of the FeNi Haltim plant was attended by Coordinating minister for the Economy, Hatta Rajasa as well as representatives from local government officials, including North Maluku governor and Maluku Timur Regency Head.

Antam has appointed financial arrangers to manage loans for Antam, comprising of Bank Mandiri, Bank Rakyat Indonesia, Mandiri Sekuritas, Goldman Sachs, Deutsche Bank, Sumitomo Mitsui Banking Corp Ltd and Standard Chartered bank. Antam expects to get $1 billion of loan to develop the project through the arrangers. (alex)