JAKARTA (TheInsiderStories) - Indonesia state own gold and nickel producer PT ANTAM Tbk (IDX: ANTM) will sign engineering, procurement and construction agreement to develop the first phase of ferronickel plant turnkey with PT Wijaya Karya Tbk (IDX: WIKA) and Japan’s Kawasaki Heavy Insustries, Ltd, said the company.
The plant with capacity 13,500 ton of nickel per year have contract values of Rp3.43 trillion. The plant will develop with rotary dryer with capacity 170 ton per hour, rotary kiln 165 hour and electric smelting furnace with capacity 60 megawatt and other supporting facility.
ANTAM 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. The construction of the new plant is scheduled to begin next year.
ANTAM’s Director Johan Nababan said the project will require investments of around $800 million with capacity of 19,500 tons per year of Ni product. In 2016 to 2017, ANTAM plans to build three smelters with total investment around $3.5 billion in Kalimantan and Maluku Island. 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).