Antam starts construction power plant for FeNi III nickel expansion project

State diversified miner PT Antam Tbk said Friday it had awarded an engineering procurement and construction (EPC) contract worth US$64.5 million to W?rtsil? Oy of Finland to build a 6x17-megawatt diesel-generated power plant for its ferronickel (FeNi) project in South Sulawesi.

Antam said construction on the power plant (PLTD-3), the third power plant in the area, is expected to last 18 months and will be completed in two stages. ?After 14 months of construction, PLTD-3 is expected to be able to support electricity supply for FeNi I and FeNi II smelters, and 4 months afterward the new power plant is expected to run at capacity,? Antam said.

Construction of PLTD-3 is an integrated part of the FeNi III project, which has an estimated cost of $320- $330 million. According to Antam, funding for the project will come from the proceeds from the issuance on September 30, 2003 of $200 million notes by Antam?s Mauritius-based subsidiary Antam Finance Ltd., a $60 million bilateral loan from Bank Central Asia (BCA) and the company?s internal cash.

Antam also said the new FeNi III smelter was currently being built by an unincorporated consortium of Mitsui Co. Ltd. Japan and Kawasaki Heavy Industries. ?The construction of FeNi III project will last 28 months and is expected to start commercial operation in the first quarter of 2006,? Antam added. (robert)