Loan for RI copper plant

Loan for RI copper plant

TOKYO (AFP): Bank of Tokyo-Mitsubishi Ltd. said yesterday it would provide, along with Japanese and British banks, a loan of US$410 million for Indonesia's first copper smelting project.

A spokesman said Tokyo-Mitsubishi had formed a loan syndicate with Industrial Bank of Japan Ltd., as well as Barclays Bank plc of Britain, adding that the loan period was about 12 years.

The three banks would invite other institutions in Japan, Europe, the United States and other Asian countries to join the syndicate, which is planned to have about 20 members in total, he said.

Construction of a smelting plant is planned to begin in Gresik, eastern Java, in June, with operations starting in the second half of 1998. The plant will have an annual capacity of 200,000 tons.

A spokesman for Mitsubishi Materials Corp., a leading Japanese metals company, said it had agreed to provide both smelting technology and sales assistance to the project.

Support from other Japanese companies was also expected, including engineering firm Chiyoda Corp. and trading house Mitsubishi Corp., he said.

The total cost, excluding operating funds, is likely to reach $600 million, with the lending syndicate putting up some 70 percent, the Tokyo-Mitsubishi spokesman said.