Indonesia's mining firm seeks 2.6 billion USD in investments

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2012-06-04

Indonesian state-controlled gold and nickel miner, PT Aneka Tambang is seeking 2.6 billion U.S. dollars in investments through 2014 to finance various projects in the country, a media reported here on Monday.

The firm is mulling several options including selling bonds, bank loans or export credit facilities. "External funding accounted for approximately 65 percent of the investment value of Antam's multi-projects with total costs of $4 billion," the miner's president director, the Jakarta Globe quoted Alwinsyah Loebis, as saying.

Antam is currently building several projects, including a chemical-grade alumina plant in Tayan, West Kalimantan, a ferronickel plant in East Halmahera, North Maluku, and a smelter- grade alumina plant in Mempawah, West Kalimantan.

The firm also has a ferronickel plant in Pomalaa and a nickel pig iron project in Mandiodo, both in Southeast Sulawesi.

Antam has yet to issue 1 trillion rupiah (some 106.38 million U. S. dollars) in bonds, which was part of a 4 trillion rupiah ( about 425.53 million U.S. dollars) bond offering that was planned for 2011, Alwinsyah said.

He said the company might also issue global bonds in an effort to tap the global market for funds. That, however, would depend on market conditions, he added.

The company is also exploring export credit facilities from Europe and Asia.

Jaya Tambunan, Antam's finance director, said the company was talking with several foreign institutions about project financing. Jaya said the financing could be used for the East Halmahera ferronickel plant because the project needs supplies and equipment from abroad.

Source: United States News.Net

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