Mitsui to guarantee Antam's loans for expansion

Japanese trading company Mitsui Co. has stated that it is prepared to guarantee state mining company PT Aneka Tambang's (Antam) loans for the expansion of its nickel business operation in Pomalaa, Southeast Sulawesi.

Mitsui spokesman told BridgeNews in Tokyo that Antam had failed to secure loans from Japan bank of International Cooperation (JBIC) on time to finance its planned Pomalaa nickel project expansion.

Therefore, Mitsui was prepared to guarantee Antam's loans from other Japanese financial institutions, the spokesman said.

Sources said that Antam would likely appoint Mitsui as its contractor for the Pomalaa project following Mitsui's commitment to guarantee the loans. Mitsui is one of two tender participants for the project. The other participant was Tessag INA Group of Germany.

Antam's appointment of the contractor is expected to be made at the end of this month.

Antam has re-tendered the Engineering Procurement and Construction (EPC) for the nickel expansion project in Pomalaa after it failed to secure financial loans from JBIC last April. (*)