Antam to issue US$150 bonds to finance alumina project and acquisition
Wednesday, June 27 2001 - 06:01 AM WIB
Company president Deddy Aditya Sumanegara told reporters in a press conference that the bonds would consist of $90 million dollar-denominated bonds and $60 million rupiah-denominated bonds.
The dollar bonds would be sold to the local banks, while the rupiah bonds would be sold the public, Deddy said.
He said the bonds had been given the AA- rating by Indonesia?s credit rating agency Pefindo and Antam would ask for international credit rating agency Standard & Poor?s or Moody?s to give their assessment of the bonds.
?The proceeds will be used to finance the planned development of our bauxite/alumina project in Tayan, West Kalimantan and our acquisition plans,? Deddy said.
Antam has planned to build an alumina plant in Tayan with an annual capacity of 300,000 tons of chemical grade alumina.
Antam has discovered bauxite reserves of 115.5 million tons in Tayan.
The government has awarded an approval in principle of the project, but its efforts of obtaining the contract from the government has been hampered by the government?s plan to introduce a new mining law.
Sources said the government would not issue the Tayan contract until the House of Representatives approved the mining bill which the government planned to submit to the House for deliberations next month.
Deddy said Antam has reached an agreement with two Japanese firms- whose name was not revealed due to confidentiality agreement- to form a joint venture to develop the project with Antam holding 51 percent, the Japanese firms 49 percent.
Regarding acquisition plans, Deddy refused to name Antam wanted to acquire using proceeds from the bond issuance.
He earlier noted however that the company was having a look around a Papua New Guinea mining company and it was also interested in Australia?s Centuar Mining & Exploration Ltd which has nickel and gold project in Australia. (Alex/Godang)