Antam to modify FeNi III expansion project
Tuesday, April 8 2003 - 09:29 AM WIB
The company said that the Euro exchange rate had exceeded the level it had agreed with its contractors.
?Antam will modify the project by reducing project costs, employing US dollar-denominated Engineering, Procurement and Construction (EPC) contracts and acquiring capital from domestic sources,? it said.
The previously executed EPC contracts became null and void, Antam said.
Antam said that project modification would involve the changing of its ?mega project? concept, which entails investment in a new smelter and a power plant.
Consequently, Antam would concentrate on the development of the smelter, and let other parties to fund and develop the power project, it said in a statement.
The company said that with the modification, total costs of the ferronickel project would decrease from the previous maximum amount of US$380 million to around $230 million.
Earlier reports said that Antam had planned to raise euro-denominated loans from German bank, IKB Hermes, which amounted to between US$240 million-$255 million.
The reports said that Antam had considered canceling its plan to raise loans from IKB Hermes due to the appreciation of Euro.
Antam said Tuesday that state-owned Bank Mandiri had given written commitment to provide it up to $150 million for the construction of the FeNi III project.
The company added that it was in talks with other EPC contractors and power plant developers concerning the development of FeNi III project.
Antam is majority owned by the government, and is listed on the Jakarta Stock Exchange and an Australian bourse. (robert/leo)