Inco and Antam ready to sign cooperation agreement

After two years of negotiations, PT Aneka Tambang (Antam) and PT Inco have finally cleared all the barriers for the joint development of the latter?s 70,000 hectare-nickel concession area in Pomalaa, Kolaka, Southeast Sulawesi, Neraca business daily reported on Monday.

Antam?s president director Dedy Aditya Sumanegara said in Jakarta late last week that the two companies had in principle agreed to jointly develop Inco?s concession area in Pomalaa. "We hope the agreement could be signed before the end of this month," he said.

Deddy said that Antam would pay fee for each tons of nickel produced from Inco?s Pomalaa nickel mining area but he was reluctant to unveil details of the fee arrangement. "Details of the cooperation will be disclosed after the signing of the agreement," he said.

The Pomalaa nickel mining area, which obtained by Inco in 1970, has often caused controversies. The local government has demanded Inco to develop the area but the latter cannot fulfill the demand due to the high cost in developing the area, which is located some 300 kilometers from its main nickel operation in Soroako, South Sulawesi.

Inco and Antam have negotiated the possible joint development of the area for almost two years but only recently the two companies have been able to reach agreement on some important aspects of the joint operation plan particularly after the local government threatened to revoke the mining permit if Inco continued to neglect the nickel mining area.

According to Deddy, the joint development of the Pomalaa nickel mining area which is located only some kilometers from Antam?s mining area in the regency is quite appropriate. "Aneka?s nickel reserves in the area are declining while the location is too far way from Inco?s main mining area," he said. (*)