BNBR to build explosive plant

PT Bakrie & Brothers Tbk (BNBR) plans to build an ammonium nitrate plant next year. The plant which will produce raw material for ammonium nitrate will cost US$ 300 million, said Eddy Soeparno, the company's Finance Director as quoted by Kontan.

?We will build the ammonium nitrate in Kalimantan,? said Soeparno recently, adding that the construction of the plant is expected to complete within 18 to 22 months.

The project will be included under the company's infrastructure funding scheme which is currently being drafted.

Projects listed under the company's infrastructure fund will be offered to investors. Eddy did not give details when the offering will be be done.

Construction of the ammonium nitrate plant will support the company's coal business, said Eddy.

?The explosive will be used in coal mines operated by BUMI and BERAU. That's why the plant will be set up in Kalimantan," he said.

Aside from the ammonium nitrate plant, BNBR is also preparing a US$2 billion coal-fired power plant Tanjung Jati A.

BNBR has already had a deal with South Korean Samsung C&T Corporation for the project, but the company is also looking for a cooperation with Japanese investors for financing.

The company is also working on a Rp 300 million geothermal power plant in Flores, eastern Indonesia which is developed together with Australian Panax Geothermal Ltd. (*)