Antam puts off nickel project on delay in financial approval<\/p>\n
SINGAPORE (Dow Jones): Indonesia's major nickel producer PT
\nAneka Tambang, or Antam, has postponed the construction of its
\nnew ferronickel unit to next year due to a delay in financial
\napproval, Antam's officials told Dow Jones Newswires Friday.<\/p>\n
This is the second time the construction has been postponed
\nsince 1999. The new ferronickel unit is expected to be built in
\nPomalaa, southeast Sulawesi.<\/p>\n
Initially, construction of the new unit, at an estimated cost
\nof US$200 million, was scheduled to start mid-2001. Once
\ncompleted, the unit will lift Antam's capacity to 24,000 metric
\ntons per year from the current 11,000 tons.<\/p>\n
The delay in financial approval is because of an inclusion of
\na new nickel smelting technology, and the inclusion of new
\nmarketing, technical and environmental studies that has delayed
\nthe completion the project information memorandum, Antam
\nspokesman Cameron Tough said.<\/p>\n
\"The construction could proceed after the funding is in place,
\npossibly in early 2002,\" he said.<\/p>\n
Hermes Kreditversicherungs AG, a German export-credit agency,
\nalready expressed its support for the project, and final approval
\nis expected in October, corporate secretary Dohar Seregar said in
\na separate interview.<\/p>\n
\"We have already received a letter of support from Hermes June
\n18,\" Seregar said.<\/p>\n
After the final approval, it will take approximately three
\nmonths for financial closure and the credits could be withdrawn
\nthen. The construction could start after that, Tough said.<\/p>\n
The German export-credit agency is expected to guarantee loan
\ncoverage for Germany's IKB Deutsche Industriebank AG.<\/p>\n
Antam will fund 30 percent of the project on its own, while
\nthe remaining will be debt financed, including a loan from
\nGermany's IKB Deutsche Industriebank.<\/p>\n
Germany's Tessag Industries-Anlagen GmbH is the project's
\nengineering procurement and construction contractor.<\/p>\n
The construction, which would take 28 months, is expected to
\nbe completed in 2004, spokesman Tough said.<\/p>\n
Antam's offtake agreements for its planned output from the new
\nunit with South Korea's Pohang Iron & Steel Co., or Posco, and
\nGermany's Krupp Thyssen Nirosta GmbH \"are still valid,\" Tough
\nsaid.<\/p>\n
Posco has agreed to take delivery of 7,000 tons a year of
\nAntam's output over a period of 10 years, from the start of
\ncommissioning of the new plant. The German stainless steel
\nproducer will take 8,000 tons\/year for the same period.<\/p>\n
Ferronickel is used in the production of stainless steel.<\/p>\n
According to Tough, the new plant will use a new smelting
\ntechnology called the copper cooling smelting technology. The
\ntechnology will help improve the output capacity by allowing
\nthroughput of higher grade ore.<\/p>",
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