Antam signs EPC contract for power development
Tuesday, December 18 2012 - 12:30 AM WIB
State mining firm PT Antam has signed the engineering, procurement, and construction (EPC) contract of its coal-fired power plants as part of the modernization and optimization of its Pomalaa ferronickel smelters in Sulawesi.
The Circu?lating Fluidised Bed (CFB)-type coal fired power plants have a generation capacity of 2 x 30 megawatt (MW) and will be built by Sumitomo Corpora?tion as the main contractor, PT Antam announced in a press statement on Monday.
The EPC cost of the power plants is US$145 million.
The power plants development is intended to provide elec?tricity for the auxiliaries of the company?s FeNi I, FeNi II and FeNi III ferronickel smelters. Once the coal fired power plants start operation, Antam?s energy cost is expected to decrease by between 15 and 2O percent.
Antam is currently modernizing and opti?mizing its FeNi I smelter at Pomalaa which has been in operation since 1976. The modernization and optimization project also includes the development of a larger jetty and belt conveyors to transport nickel ore feedstock to the smelters. Construction on the coal fired power plants is expected to last 25 months for the first unit and 28 months for the second unit. The power plants will require approximately 300,000 tons of low grade coal annually, with a 4,200 kcal/kg (GAR) calorific value.
Antam also stated that the construction of its downstream projects is on track. Among them is the Tayan CGA project. As of the end of October 2012, the construction of the Tayan CGA project has reached 81.5 percent, with commissioning to be expected at the end of 2013.
Editing by Benget Besalicto Tnb.