Antam seeks US$250m loans
Thursday, March 27 2014 - 02:25 AM WIB
Antam Finance Director Djaja Tambunan said on Wednesday total investment required for the Pomalaa plant is about $600 million, or around Rp 6.7 trillion. Last year, the company had spent Rp 2.37 trillion for the project from the proceeds of its bond issue. Next year, the company plans to raise external funds $100-510 million. Antam also has expressed plans to raise funds via rights issue. The Office of the State Minister of State Enterprises is scurrently in discussions with the House of Representatives for the approval of the plan. Djaja added that the company also still has room for bonds issue. "We could not yet disclose the schedule for the rights issue and bond issue plans," Djadja said.
Meanwhile, Antam President Director Tato Miraza said that the Pomalaa project has covered 35 percent of the targeted works.
Elsewhere, Tato said that the mineral ore export ban would cause the company to suffer potential losses of up to $400 million as it could no longer export nickel ores, which account for about 35 percent the company's total revenue last year.
To help deal with situation, Antam would carry out a number of measures including efficiency programs, reschedule projects, and accelerate strategic projects such as the Tayan Chemical Grade Alumina project, which is expected to start operation in April to contribute revenue to the company. "Our target is to produce 135,000-160,000 tons this year," Tato said.
He added that another strategy include boosting its ferronickel and gold businesses. The company this year has set ferronickel sales volume target of 19,700 tons, or a 35 percent jump from 2012 volume.
Meanwhile, gold sales volume is targeted to increase by 44 percent to 13.6 tons. (*)