Antam building nickel smelter Halmahera Timur.
State mining company PT Aneka Tambang (Antam) is starting the construction of a US$ 1.6 billion nickel smelter after a ground breaking ceremony late last year. The smelter with a production capacity of 27,000 tons of ferronickel to be built in Halmahera Timur is expected to be operational in 2014. Antam's president Alwin Syah Loebis said a subsidiary PT FeNi Haltim has been established to operate the factory. Alwin said the completion of the project is set to coincide with the implementation of the law on minerals and coal banning the exports of unprocessed minerals in 2014. The law will force many mining companies to build their owns processing factories. Alwin said Antam has arranged project financing with a bank consortium grouping major local and foreign lenders such as Bank Mandiri, Bank Rakyat Indonesia, Goldman Sachs and Deutsche Bank. The consortium has agreed to provide up to US$ 1 billion, he said. The project is included in the Master Plan for Acceleration and Expansion of Indonesian Economic Development. (MP3EI).
|Printer friendly Cite/link Email Feedback|
|Title Annotation:||CORPORATE NEWS IN BRIEF|
|Publication:||Indonesian Commercial Newsletter|
|Date:||Dec 1, 2011|
|Previous Article:||Denso builds new factory in Indonesia.|
|Next Article:||Daihatsu to build new factory.|