Hermes supports Antam?s ferronickel project

German export credit agency Hermes had issued a letter of support for publicly-listed state mining company PT Aneka Tambang (Antam) to build its third ferronickel plant in Pomalaa, Southeast Sulawesi, paving the way for the state company to obtain loan from the German firm for the construction of the project.

?The letter of support was issued on June 18,? Antam?s president Dedy Aditya Sumanegara said Wednesday in a press conference.

He said Antam expected Hermes to issue its final approval for the so-called FeNi III project in October this year.

Antam?s corporate secretary Dohar Siregar earlier said the company was seeking to obtain a loan of about US$150 million from German IKB Industrie bank to finance the development of the $220 million plant. The remaining developmental costs of the project are expected to be covered with syndicated loans from local banks and Antam?s own money.

?The physical development of the project will start after Hermes gives its final approval,? Deddy said.

The new plant will increase the production capacity of Antam?s ferronickel complex in Pomalaa to 24,000 tons per year from 11,000 tons this year.

Antam has awarded the contract for the construction of the new plant to German firm Tessag INA GmbH. (Alex/Godang)