Mitsui wins Aneka Tambang project

Mitsui wins Aneka Tambang project

JAKARTA (JP): Japanese contractor Mitsui has come out as the
preferred bidder in an international tender for the construction
of the third ferronickel plant of state general mining company PT
Aneka Tambang (Antam) in Pomalaa, South Sulawesi.

Antam's president Dedy Aditya Sumanegara said on Thursday that
Mitsui beat off competitors from Germany, the United States,
Norway and Britain in the international tender held in August.

But, Dedy said, Mitsui had yet to reach agreement with Antam
on technical and financial aspects of the project before it
definitely seals the project.

"We are now in negotiations on technical and financial aspects
of the project with the company. If no agreement is reached on
these matters, the project will be retendered," Dedy said on the
sidelines of the Indonesia Mining '98 conference at the Jakarta
fairgrounds in Kemayoran, Jakarta.

Dedy said Antam obliged bidders for the projects to look for
financiers for it.

"We hope to reach a deal before the first quarter of next year
when the development of the plant is scheduled to start," Dedy
said.

Aneka Tambang director of development Subagyo earlier said
that the company would invest Rp 281.4 billion (US$37.5 million)
to build the ferronickel plant with a capacity of 13,000 metric
tons.

Operation of the third plant will expand the company's
ferronickel output to 24,000 tons in 2001.

Dedy refused to reveal the price offered by Mitsui for the
construction of the plant.

Dedy also said Antam had signed an initial off-take agreement
with an international ferronickel buyer under which the latter
will buy 30 percent of the company's planned output of 24,000
tons.

"The signing of the final off-take agreement is expected to
take place by the middle of next month," Dedy said, but he
declined to give further details.

Antam is listed in Jakarta but also plans to list in
Australia.

Antam is one of several state companies the government has
planned to privatize in order to generate additional revenues
amid the monetary crisis.

Dedy said the government was considering two alternatives for
the privatization, including selling some of its shares in Antam
or selling the company's non-core assets. No choice has been made
yet. (jsk)