Antam's ferronickel smelter ready by 2002<\/p>\n
JAKARTA (JP): Publicly listed PT Aneka Tambang (Antam)
\nannounced on Tuesday that construction of its third ferronickel
\nsmelter in Pomalaa, Southeast Sulawesi, would commence at the end
\nof 1999, after being postponed for over a year.<\/p>\n
The project would be carried out by Mitsui & Co. Ltd., of
\nJapan, which beat five other bidders during a limited
\ninternational tender last year, Aneka Tambang said in a
\nstatement.<\/p>\n
Mitsui will be responsible for conducting the engineering,
\nprocurement and construction of the facility, called FeNi III.<\/p>\n
It is scheduled for completion in 28 months, and becomes
\noperational by 2002 with an annual capacity of 13,000 tons.<\/p>\n
FeNi III, which is to be built alongside the FeNi I and FeNi
\nII smelters, would increase Aneka Tambang's ferronickel annual
\nproduction to 24,000 tons, it said.<\/p>\n
As part of the agreement signed last month, Aneka Tambang and
\nMitsui will form an independent power producer joint venture to
\nbuild a power plant for the three smelters. This project will
\ntake 21 months to complete.<\/p>\n
The smelting project's construction was postponed from the
\noriginal schedule of mid-1998 due to complications in arranging
\ndebt financing following the economic crisis.<\/p>\n
The financing scheme, which is supported by Japan's Exim Bank,
\ndoes not require the Indonesian government to act as guarantor or
\nborrower for the project.<\/p>\n
The project would also be funded from Aneka Tambang's Initial
\nPrice Offering (IPO) of November 1997, it said.<\/p>\n
The company said last year that total investment for the new
\nsmelter would amount to Rp 281.4 billion (US$40.2 million).<\/p>\n
Aneka Tambang is listed on the Jakarta Stock Exchange. Its
\nshare price has remained stable between Rp 1,500 and Rp 1,600
\nsince February. (02)<\/p>",
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"sponsor": "Okusi Associates",
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