Antam picks Indika, Nava Bharat as partner in power project

IDX-listed state miner PT Aneka Tambang (Antam) announced Wednesday that it has selected the consortium of PT Nava Bharat Indonesia dan PT Indika Energy Tbk. as its partner in the development of a 2x75MW coal fired power plant at Pomalaa, Southeast Sulawesi .

Antam and the consortium will soon form a joint venture company to build the power plant which will replace the existing diesel power plant (PLTD) III to supply electricity for ferronickel processing.

The consortium will have a 80 percent stake in the joint venture company and Antam will hold the remaining 20 percent.

The cost of the power project is estimated at US$300 million. Antam expects the project construction to begin at the end of 2010 with the commercial operation to start in 2013.

Antam said that the company and the consortium would be working on several agreements related to the formation of the joint venture company as well as technical and environmental studies for the power projects.

The joint venture company will soon seek the financing for the project.

The development of Pomalaa?s power plant is part of Antam?s strategy to reduce ferronickel production cost. Antam currently uses the 102-MW PLTD III to supply electricity to its ferronickel smelters.

Antam is also currently reviewing the possibilities of acquiring coal mines to provide the coal needs of the power plant. (denny)