Jindal drops SE Sulawesi nickel, stainless steel JV with Antam

Indian firm Jindal Jindal Stainless Limited has dropped JV plan with state mining firm PT.Aneka Tambang (Antam) to build a 20,000 TPA nickel in ferronickel and 250,000 TPA stainless steel facilities in North Konawe, South East Sulawesi.

Antam said in a statement released Friday that Jindal has notified its intention to withdraw from the project due to global economic crises, coupled with problems at Antam?s license area.

Antam said North Konawe Regent issued a decree of a portion of Antam?s area to another company. The decree caused reduction and overlapping over Antam?s concession. Antam has spent Rp60billion for exploration and mining preparation activities at Mandiodo.

Antam has since filed a petition at the Kendari Administrative Court on 4 June 2008 and on 28 October 2008 Antam won the petition. The North Konawe government has appealed the decision to the Makassar High Administrative Court on 18 November 2008 and currently awaits the decision, the company said. (denny)