Antam sets aside US$137.5 million to develop Pomalaa power plant

State nickel and gold miner PT Aneka Tambang Tbk (Antam) said it will set aside US$137.5 million to finance the development of coal-fired power plant (PLTU) in Pomalaa, Southeast Sulawesi.

Director for Development of Antam, Tato Miraza, was quoted by Investor Daily as saying that the expenditure is about 25 percent of Antam?s capital expenditure in 2012, amounting to US$550 million.

The power plant is expected to commence operation in 2014. Electricity from the power plant will supplied to Antam?s ferronickel smelter plant in the area, and portion of the electricity will be sold to state utility company PT PLN.

In the first semester, Antam posted revenues of Rp4.9 trillion, up from Rp4.3 trillion in the same period last year, while net profit stood at Rp997 billion from Rp756 billion a year ago. Around 40 percent of the company?s revenues were contributed from ferronickel, followed by nickel ore (24 percent) and gold contributing 35 percent.

Apart from power plant in Pomalla, Antam will also develop Smelter Grade Alumina Mempawah worth US$1 billion, Feni Halmahera Timur smelter plant with estimated investment of US$1.6 billion, CGA Tahan ($450 million), Nickel Mandiodo ($345 million - $400 million) and sponge iron project with estimated cost of $150 million. (*)