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Antam Signs $10m Contract For Pomalaa Oxygen Plant

  • Monday, December 16, 2013
  • Source:

  • Keywords:Antam
[Fellow]
Aneka Tambang, the state gold and nickel miner known as Antam, has signed an engineering, procurement and construction contract for development of its fifth oxygen plant in Pomalaa, Southeast Sulawesi.
 
The Jakarta-based company signed the contract with South Korea’s Daesung Industrial Gases and a local partner of Koin Konstruksi.
 
The contract is worth $11 million and EPC works are expected to be completed in the first half of 2015, said Tato Miraza, president director of Antam, in Jakarta on Wednesday.
 
Seoul-based Daesung produces and sells various gases and also designs gas facilities and gas-purifying facilities.
 
Tato said that the oxygen plant was part of a $573 million project to upgrade its existing ferronickel plant in Pomalaa.
 
The plant is needed to purify the oxygen to be added into the ferronickel smelting process.
 
The plant expansion is divided into a few segments and is expected to expand the existing plant’s ferronickel production capacity to between 25,000 and 27,000 metric tons a year annum in 2016 from 18,000 to 20,000 tons a year now.
 
Ferronickel is a processed material from ore nickel.
 
Apart from the oxygen plant, the plant will be supported by a jetty, belt conveyors, electric smelting furnace and a coal-fired power plant.
 
Tato said Antam had spent Rp 1.33 trillion ($111 million) on the project as of October 2013 since its ground-breaking ceremony in February.
 
President and chief executive of Daesung, Kim Hyoung-tae, said Indonesia offered good business prospects for the company thanks to its steady growth and vast natural resources at a time when South Korea’s economy was slowing.
 
Daesung has a portfolio that includes building facilities for state energy company Pertamina in Cilacap, West Java.
 
Tato said last week that Antam was considering the sale of $200 million of dollar-denominated bonds in the second half of 2014 to fund the Pomalaa project.
He did not disclose the terms of that bond issuance.
 
Antam has also budgeted Rp 2.9 trillion for capital expenditure next year. Most of these funds will go toward the Pomalaa project.
 
The capex excludes the costs for acquiring gold-mining companies, as Antam also plans to raise production of the precious metal.
 
Antam booked a 44.6 percent decline in profit to Rp 348 billion in the first nine months of 2013 from a year earlier.
  • [Editor:editor]

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