Falconbridge eyes Tanjung Buli nickel project
Wednesday, April 17 2002 - 03:50 AM WIB
Antam?s investor relations manager, Winardi, said in Jakarta on Tuesday that the Canadian company expressed its commitment to cooperate with Antam in developing the Tanjungbuli nickel project shortly after it decided to cancel its investment plan in PT Gag Nikel Indonesia in Papua.
"Negotiations on the entry of Falconbridge still continues, although no agreement has been made," he was quoted as saying.
Falconbridge, the second largest nickel producer in the world, initially planned to acquire 37.5 percent of BHP?s stake in PT Gag Nikel by providing a fresh investment of about US$75 million. But uncertainty related to the status of the company?s concession area has forced the company to withdraw its investment plan.
The Tanjung Buli nickel project is the fourth nickel mine of PT Antam after Pomala, Pulau Gebe and Pulau Gee nickel mines. PT Antam commenced the production activities at the Tanjung Buli mining project in July, last year with an annual capacity of 4,000 tons. The company exports the nickel from the new mining area to Japan, with the first shipment being made in August, last year.
Winardi said that the Tanjung Buli nickel mining concession area covers an area of about 39,040 hectares and is able to produce 4,000 tons of nickel a day. "The production target is about 1.4 million tons a year," he added.
If Falconbridge agrees to become a strategic investor in the Tanjung Buli nickel mining project, the company will handle low-quality nickel products (limonit), while Antam will focus on the production of high-quality nickel or saprolite, he added.
Winardi said that nickel deposits at the Tanjung Buli are estimated to reach 36 million tons, much higher than 3.3 million tons found in Pomala, 16.5 million tons in Pulau Gebe, and 4.5 tons in Pulau Gee. (*)