Thursday, March 25, 2010

Antam to borrow $325M for nickel, gold projects

Indonesia's majority-state-owned mining company PT Aneka Tambang is seeking to borrow up to $325 million to finance its expansion plans from the Japan Bank for International Cooperation and other banks. Bimo Budi Satriyo, Antam's corporate secretary, said most of the loans would be used to provide financial support for its Tayan alumina processing plant. Money would also be allocated to its Cibaliung gold project and the Pomalaa power plant, he told The Jakarta Globe.

Antam aims to produce 18,500 t of nickel this year and will cooperate with coal miners PT Indika Energy and PT Nava Bharat Indonesia to build a coal-fired 2x75 megawatt Pomalaa power plant at its nickel project in Southeast Sulawesi province. Construction is expected to start this year and be completed in 2013.

Antam also plans to boost its gold production by expanding the Cibaliung gold mine in Banten province.The first gold output from the Cibaliung mine, acquired in 2009, is expected later this year. Antam forecasts that production will be about 500 kg this year and that it will reach full output of 2,000 kg/y from 2011. The Cibaliung gold project has a life of six years, with estimated gold reserves of 12,800 kg.

Antam’s gold mining business generated revenue of Rp 4.8 trillion last year, accounting for about 55% of the company’s revenue. It expects gold production of 2,580 kg this year.

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