Antam seeks $2.6 billion to finance expansion
Friday, June 1 2012 - 02:32 AM WIB
Antam?s President Director Alwinsyah Loebis said in Jakarta on Thursday that the external funds would account for about 65 percent of the investment requirements which were estimated to reach $4 billion.
Alwin said Antam was currently preparing a number of strategic projects which include a chemical grade alumina (CGA) in Tayan, West Kalimantan, a ferronickel plant in East Halmahera, a ferronickel plant in Pomalaa, Southeast Sulawesi, smelter grade alumina (SGA) in Mempawah, West Kalimantan and a nickel pig iron in Mandiodo, Southeast Sulawesi.
At present, Antam still has about Rp 1 trillion from the proceeds of the issuance of bonds which reached a total of Rp 4 trillion, he said. Antam also expected to raise export credit facilities from Europe and Asia.
?In addition to export credits, we also hope to be able to get project financing,? he added. Antam may also issue global bonds to meet the investment needs, he said.
For the Tayan CGA plant, Antam would need about $450 million. About 65 perent of the total would be provided by a consortium of Japan Bank for International Cooperation, the other 35 percent would come from PT Indonesia Chemical Alumina (ICA), which operates the CGA plant. Antam has a 80 percent stake in ICA, while its partner Showa Denko KK holds the other in 20 percent.
Meanwhile, for the ferronickel project in East Halmahera, Antam would need about $1 billion in investment. If the cost for the construction of a power plant is included, the investment requirement would reach $1.6 billion.
Antam also plans to invest between $ 450 and $500 million to modernize its ferronickel plant in Pomalaa, including its power plant. In addition, Antam would need about $1 billion to build the SGA plant in Mempawah. For the nickel pig iron in Mandiodo, Antam would invest between $350 and $400 million. (*)