JAKARTA (TheInsiderStories) - Indonesia state own gold and nickel producer PT Aneka Tambang Tbk (ANTM) teams up with Germany’s Ferrostaal Group and U.S Cronimet Corporation to develop a ferronickel processing plant which will process raw materials for stainless steel in Pomalaa, Southeast Sulawesi, one official told The Insider Stories. The construction of the new plant is scheduled to begin next year.
Antam’s Director Johan Nababan said the Project Development Agreement (PDA) is signed during President Joko Widodo’s visit to Europe this week. According to him, the project will require investments of around $800 million with capacity of 19,500 tons per year of Ni product.
Antam plans to build three smelters with total investment around $3.5 billion in Kalimantan and Maluku Island in 2016 to 2017. Based on company’s data, Antam’s ferronickel plant expansion project in Pomalaa is estimated to cost around $500 million.
Antam also teams up with state owned alumina producer PT Indonesia Asahan Aluminium (Inalum) and China Aluminum Co. (CHALCO) to develop a $1 billion smelter-grade alumina (SGA) refinery in Mempawah, West Kalimantan. The smelter will have production capacity of 1.6 million tons of grade alumina per annum.
Antam and Inalum will have 51 per cent stake in the project while CHALCO will hold 49 per cent share. The project will be built in three years time and will have a capability to churn out one million tons of alumina a year starting 2018 and would supply to Inalum plant in North Sumatra. The smelter would consume six million wet metric tons of bauxite ore annually.
The other smelter project in Kalimantan is Anode Slime processing with capacity 2,000 ton per annum. In East Halmahera, Maluku Province, Antam plans to build ferronickel processing with total capacity 40,000 ton of TNi per year with total investment $1.6 billion.
About 65 per cent stake in Antam is own by the Government of Indonesia and its shares are listed on the Indonesia Stock Exchange and the Australian Stock Exchange (ATM).
Recently, Tedy also stated, Antam is looking to acquire gold and ferronickel mines in Myanmar and Philippines to push up the company revenues from raw materials sales, said a company official. For that, He said, Antam is prepared to invest around Rp10 trillion i this year.
The company wants to double its gold production from 2,5 tonnes to 5 tonnes in 2016.
Newmont Acqusition
Meanwhile, CEO of Antam Tedy Badrujaman said, state owned mining companies are keen to acquire U.S Newmont Corp. shares in Indonesian assets. The consortium, comprises of Antam, PT Indonesia Asahan Aluminium (Inalum), PT Tambang Bukit Asam Tbk (PTBA) and PT Tambang Timah Tbk (TINS), are currently reviewing the plan.
Newmont Corp’s ownership in PT Newmont Nusa Tenggara is approximately 56 percent while PT Multi Daerah Bersaing 24 percent, PT Pukuafu Indah 17.8 percent, and PT Indonesia Masbaga 2.2 percent.
Currently, an Indonesian consortium led by veteran investment banker Agus Projosasmito is in talks to raise $1 billion of debt to back its bid to acquire controlling stakes of Newmont Mining Corporation’s copper operations in the country.
The Indonesian consortium also includes Arifin Panigoro, the founder of energy-focused Medco Group, according to the people. The bidding group is seeking to buy a majority stake in local operating company Newmont Nusa Tenggara, people familiar with the matter said in January.
Newmont is seeking to sell its local business after Indonesia banned raw ore shipments in January 2014 and put a progressive tax on concentrates, a semi-processed ore that’s shipped to smelters for processing into finished metal. The move is part of a wider policy to boost revenue by turning the country into a manufacturer of higher-value products and encourage construction of domestic smelters and refineries.
Newmont Mining chief executive officer Gary Goldberg told a conference February 29 that the company and Sumitomo are in talks with parties who have expressed “serious interest” in the Indonesian mine, though none had yet agreed on final deal terms or secured fully committed financing.
Rizal Ramli, a coordinating minister overseeing mining in Indonesia, said in November that Panigoro plans to buy 76 per cent of the mine for about $2.2 billion. (*)