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)