Antam receives capital injection from government
Monday, October 26 2015 - 12:58 AM WIB
IDX-listed mining firm PT Aneka Tambang Tbk (Antam) said it has received Rp 3.5 trillion in capital injection from the government via rights issue mechanism.
"The Government of Indonesia has injected Rp3.5 trillion to Antam to exercise its rights in the rights issue transaction,? said Tedy Badrujaman, President Director of the state-controlled firm, in a statement Monday.
Antam explained that from the total maximum proceeds of Rp5.4 trillion from the rights issue, Rp3.5 trillion will be used for the completion of the construction of a ferronickel plant (phase 1) in East Halmahera, North Maluku province, which will increase the production capacity of ferronickel by 13,500-15,000 tons of nickel contained in ferronickel (TNi) per year.
The rest of the proceeds will be used to finance working capital related to Antam?s operating activities as well as the company?s business development initiatives related to increased production capacity, it added.
Antam said its continual investment in ferronickel smelting capacity will further reposition the company as a vertically integrated base and precious metals player, further enhancing the firm?s competitiveness and value-add to its global customers.
Antam?s President Director said further, ?Antam continues to be the producer of ferronickel at the lowest cost quartile, supported by large-scale reserves, making Antam one of the major players in the ferronickel industry.?
Editing by Reiner Simanjuntak