Antam cooperates with German companies to develop Pomalaa production

Jakarta (ANTARA News) - PT Aneka Tambang (Antam) has invited two German companies - Cronimet Holding GmBh and Ferrostaal Industrial Project GmBh - to cooperate in the development of metal productions in Pomalaa, Sulawesi.

The president director of the publicly-listed state-owned mining company, Tedy Badrujaman, said in a written statement received here on Wednesday that the cooperation agreement has the same goal as in other nickel-based projects.

"I am convinced that this project, like other projects such as the Pomalaa ferronickel plant extension project and the Haltim ferronickel plant development projects, will provide added value to Antams big nickel resources in Indonesia," he said.

The cooperation, Tedy said, is part of the companys strategy to show its commitment to shareholders, in a bid to increase the value of their shares.

"This is Antams commitment to increase the value of shares, which is in line with the companys strategy to increase the value of reserves by increasing their processing activities," he said.

Antam, Cronimet and Ferrostaal will study the possibilities of developing Antams nickle deposits through development of its ferronickel facilities in Pomalaa, Southeast Sulawesi.

The project, based on the results of preliminary studies, is estimated to be able to process up to 1.85 million wet metric tonnes of nickel ore per year into 19,500 metric tonnes of nickel, in the form of ferronickel, with a minimum content of 15 percent nickel.

"Under the agreement, Antam will supply nickel ore to feed the the plant with a minimum content of nickel of 1.6 percent," he said.

Antam, Tedy noted, will benefit from the use of its existing infrastructure in Pomalaa and be responsible for operations and maintenance of the ferronickel production facilities.

Based upon early estimates, the value of the project is US$800 million, with Antam holding 25 percent share ownership and Croniment and Ferrostaal 75 percent.

This project, he said, is part of Antams strategy to enter into value added processing activity, in cooperation with world class companies, such as Cronimet and Ferrostaal.

Croniment has extensive experience in procuring and marketing of products for non-corrosive steel industries globally, including logistics and other services needed by consumers.

Ferrostaal is also experienced in developing and implementing large-scale industrial plants, especially in building project scheme structures covering EPC contract and Operations and Maintenance contract arrangements.

The confirmation of Antams cooperation with the two German companies was announced following the signing of a project development agreement on Tuesday in Berlin, Germany.

The signing of the PDA with Croniment and Ferrostaal was done at an Indonesia-Germany Business Forum attended by President Joko Widodo.

The PDA was signed by Tedy Badrujaman, Cronimet CEO Gunter Pilarsky and Ferronickel CEO DR Klaus Lesker, and witnessed by Indonesian trade minister Thomas Lembong and head of Indonesias Capital Investment Coordinating Board, Franky Sibarani.(*)