ANTAM, Ocean Energy to develop nickel smelter
Thursday, March 26 2015 - 12:49 AM WIB
IDX-listed mining firm PT ANTAM (Persero) Tbk said it has reached an agreement with Singapore's Ocean Energy Pte. Ltd.through which its subsidiary PTInternational Mineral Capital and Ocean Energy will cooperate in the development of a nickel smelter project in East Halmahera, North Maluku.
ANTAM said in a statement Wednesday that it started relationship with Ocean Energy through the signing of an Investment Heads of Agreement between ANTAM?s Development Director Hendra Santika and Ocean Energy Managing Director Ren Jianhua on December 9, 2014 in Jakarta.
ANTAM?s President Director, Tato Miraza, said, ?ANTAM?s cooperation with Ocean Energy reflects our continuous undertaking to add value to the economics of Indonesia?s vast nickel reserves and to support the Company?s sustainable growth."
Under the Heads of Agreement, ANTAM and Ocean Energy plan todevelop a nickel pig iron (NPI) plant in two stages. The NPI plant is expectedto produce a total of 300,000 metric tons of NPI with an estimated cost of US$280 million.
The agreement also includes plan for the development of astainless steel plant. Financing of the project will be provided by OceanEnergy with main technology support from Taizhou YongXing Alloy MaterialTechnology Co., Ltd. from China. ANTAM will provide key essential contributionsin the form of mining expertise, land development, facilities andinfrastructure development.
Editing by Reiner Simanjuntak