FS for Antam?s Pomalaa power project to be completed in June
Wednesday, May 20 2009 - 02:23 AM WIB
?By the end this month, we will receive the result of the feasibility study,? corporate secretary Bimo Budi Satrio was quoted as saying by Kontan business daily on Tuesday.
Bimo said that Antam had signed a heads of agreement with PT Indika Energy and PT Nava Bharat Indonesia to jointly build the power plant which would have a capacity of 2 x 75 megawatt.
The power plant which will operate as an independent power producer (IPP) will be built with total investment of about $300 million.
Bimo said that if the feasibility study could be completed according to the schedule, Antam and its partners Indika and Nava would sign an agreement on the establishment of a joint venture company in September.
?If all run as expected, the project will begin in October 2010,? he said.
Antam and the consortium will soon form a joint venture company to build the power plant which will replace its third diesel power plant (PLTD III) to supply electricity for ferronickel processing.
The consortium will have a 80 percent stake in the joint venture and Antam will hold the remaining 20 percent.
The development of Pomalaa?s power plant is part of Antam?s strategy to reduce ferronickel production cost. Antam currently uses the 102-MW PLTD III to supply electricity to its ferronickel smelters.
Antam is also currently reviewing the possibilities of acquiring coal mines to provide the coal needs of the power plant.(*)