Release: Antam considering financing alternatives for bauxite project
Thursday, February 12 2004 - 11:49 PM WIB
The company hopes to make a final decision by the end of the first quarter of this year.
One of the alternatives as regards Antam?s portion of the equity investment required in the project company is to raise funds through an Antam rights issue, which is subject to necessary approvals. This plan is subject to Indonesian government approval as it comes amid the government?s stated intent to potentially divest a portion of its holding in Antam, reducing its share to 51%.
Currently the government is considering limiting its potential divestment to allow Antam to also conduct a rights issue and a final decision on Antam?s divestment from the Indonesian parliament is pending. Meanwhile Antam continues to work together with its partners to determine the optimal financing scheme for the project.
The Chemical Grade Alumina project is an important growth project for Antam, to add value to its vast bauxite resources at Tayan, West Kalimantan. In partnership with international partners, Antam plans to produce chemical grade alumina, which is used for various commercial and industrial purposes such as the manufacturing of ceramics, paint, toothpaste and sparkplugs. On December 22nd, 2003, the Bankable Feasibility Study for the project was completed.
Currently Antam exports bauxite from its Kijang mine to Japan and China.
Having completed the financing for its FeNi III ferronickel expansion at its Pomalaa nickel facility in Southeast Sulawesi, work has now begun at the site, with commercial operations expected to commence in early 2006.
The expansion will more than double Antam?s contained nickel output and will lower unit cost of production due to economies of scale and an improved smelter.
Antam is also currently making preparations to overhaul and upgrade its FeNi II smelter, which will require the furnace be shut down for a four to five month period later this year.
For further information please contact:
Mr Dohar Siregar
Corporate Secretary
Tel: (6221) 780 5119
Fax: (6221) 781 2822