Antam may obtain $240 million from IKB Hermes

Publicly listed general mining company PT Aneka Tambang (Antam) said on Wednesday it may obtain US$240 million in loan from Germany?s bank consortium led by IKB Hermes.

Antam also said Germany?s Export Credit Agency (ECA) had agreed to provide it with export credit to insure Hermes loans.

The $240 million will add to the $75 million from Indonesia?s Bank Mandiri and a certain amount from Antam itself, the company said in a statement released immediately after its general shareholders meeting.

The funds will be used for Antam?s ferronickel expansion project, or FeNi III, in Southeast Sulawesi.

Repayment of the $240 million will begin six months after FeNi III plant starts commercial operation. The credit falls due after 10 years.

Earlier reports said Japanese firm Mitsui had in fact won the tender for the construction of the ferronickel plant. The company however pulled out from the project after it failed to obtain financial support.

Meanwhile, Antam president director Deddy Aditya Sumanagara said recently IKB Hermes had approved to provide loans of $300 million-$350 million for Antam. (Godang)