Eramet to spend up to $6 billion in Halmahera island nickel project

French mining conglomerate Eramet Group plans to invest up to US$6 billion in an integrated nickel mining project to be developed in Halmahera, North Maluku, in cooperation with state mining firm PT Aneka Tambang (Antam) and Mitsubishi of Japan.

"The realized investment has reached US$450 million, and it will continue to increase to reach US$6 billion,? Coordinating Minister of Economy Hatta Rajasa told reporters following a meeting between Eramet Group?s CEO Patrick Buffet and Indonesia President Susilo Bambang Yudhoyono in Jakarta on Wednesday.

Hatta said that Eramet and its partners would spend up to $3 billion in the first stage of the nickel mine development until 2012 and another $3 billion in the second stage. According to him, the investment is the largest ever made in Indonesia eastern economic development corridor Papua, Maluku and North Maluku.

Eramet, Antam and Mitsubishi have established a joint venture PT Weda Bay Nickel to develop a nickel mine and its smelting plant in Weda, Halmahera. Eramet has 56.6 percent stake in the joint venture, with Antam and Mitsubishi holding 10 percent and 33.4 percent, respectively.

Buffet said that the joint venture would be able to process up to 65,000 tons of nickel a year. The concession area in Weda is estimated to hold nickel reserves of about 600 million tons. (*)