Antam looks for $2.64 billion funding for new projects

State-owned diversified mining firm PT Aneka Tambang (Antam) is seeking funding for five new projects valued at US$2.64 billion, Bisnis Indonesia reported Monday.

The five projects that need funding are chemical-grade alumina in Tayan, West Kalimantan, smelter grade alumina in Bintan, iron cap, FeNi IV and Hydromelt.

Antam's president director Dedi Aditya Sumanegara said that the company may need $1.2 billion for the Hydromelt project alone. Hydromelt plant will be built in cooperation with Australian and Japanese companies.

?We are in the process of negotiating with Australian and Japanese companies for nickel processing project. It will be a long-term project in nature. If negotiations run smoothly, we will start our feasible study in 2009,? Dedi said recently.

He also said Antam's ongoing technical negotiation on the start of sponge iron project with steel maker PT Krakatau Steel and Transasia is almost completed.

Antam is also teaming up with Chinese firm Xinfa to build smelter grade alumina project in Bintan.

It has also established a joint venture with two Japanese companies, Showa Denco and Marubeni, as well as Malaysian Smelting Corporation to built chemical grade alumina (CGA)plant in Tayan.

Antam Director Alwin Syah Lubis said in April 2006 that the joint venture would raise US$220 million to develop the project, which will be able to produce 300,000 tons per annum of CGA in the first one or two years of production and ramping up to 500,000 tons per annum.

CGA is used for various commercial and industrial purposes, such as the manufacturing of ceramics, paint, spark plugs and toothpaste. Alumina is produced by processing bauxite. (*)