Antam, PTBA sign MoU to jointly develop power plant
Friday, January 8 2016 - 08:52 AM WIB
IDX-listed state-owned mineral mining firm PT Aneka Tambang Tbk (Antam) signed on Friday a Memorandum of Understanding (MoU) with IDX-listed coal mining firm PT Bukit Asam Tbk (PTBA) to jointly develop a power plant to support the operation of Antam?s ferronickel smelter in Halmahera Timur regency, North Maluku province.
The ferronickel smelter is now under construction and will need power supplies for its operation in the future.
PTBA?s President Director Milawarma said in the beginning, the power plant will have a capacity of 2x40 MW but the capacity may be expanded in the future depending on the smelter?s demand. If Antam expands its facilities to also produce stainless steel, the power demand of the facilities may reach 600 MW. In its operation, the power plant will be backed up diesel power generators.
He said the construction of the project is expected to kick off in the second semester of this year with an estimated investment of US$150 million.
Antam?s President Director Teddy Badrujman said in the first phase, Antam needs a 80 MW power supplies for its 15,000 mtpa ferronickel smelter.
Antam is happy to cooperate with PTBA because the firm is facing problems to finance the development of a power plant for the smelter.
?This is a historic moment for us as we no longer need to think about power,? Teddy said.
Financing for the project is expected to be raised from state owned banks, according to Teddy and Milawarma.
Editing by Johannes Simbolon