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.