Central Omega teams up with Asiazone to build smelter
Friday, October 19 2012 - 01:37 AM WIB
Central Omega will own a 40 percent stake in the new company, to be named PT Yieh United Omega, while Hong Kong-based Asiazone will control the remaining 60 percent. The venture company will operate on a 500-hectare site in Sulawesi, where Central Omega has its nickel mines.
The total investment in the Yieh United Omega project is estimated at US$700 million, which includes a $280 million smelter, a $350 million power plant and $70 million in infrastructure work.
Central Omega and Asiazone will together come up with 30 percent of the total investment funds, while the rest will come from bank loans, according to Central Omega President Director Kiki Hamidjaja.
?We have had talks with several foreign banks, some of which are from Hong Kong and mainland China. They are very interested in funding this project, but we have not inked any deal yet,? he said, adding that his company would also welcome cooperation offers from Indonesian banks.
Kiki said that Central Omega and Asiazone would start looking for potential bank partners in the middle of 2013 when the infrastructure construction would begin. (*)