Antam studying bid proposals for FeNi III expansion project

Publicly-listed state mining company PT Aneka Tambang (Antam) said on Friday it is studying the bid proposals from Japanese company Mitsui & Co and German company Tessag AG for the construction of its ferronickel expansion plant in Pomalaa, Southeast Sulawesi.

Company investor relations consultant Cameron Tough said that Antam's board of directors expected to announce decision on the bid proposals this week.

"The decision, which will choose between bidders Tessag and Mitsui, follows a third party valuation by Keiser Engineering and is currently being contemplated by the Board of Directors.

"I hope to release the information this week," Tough said in a statement to Petromindo.Com.

Earlier, Antam announced that it would make a decision regarding the successful engineering, procurement and construction (EPC) contractor by the end of last month.

It also said the so-called FeNi III project, which would increase the company's ferronickel output to 24,000 tons per year from 11,000 tons at present, is worth US$220 million, including interest during construction. Antam is ready to cover 30 percent of the cost.

Antam has several times delayed the project due to the difficulties in obtaining funds for the project.

Tough said after the selection of the contractor, Antam would arrange financing for the project. The financing arrangement, which may include state owned bank Bank Mandiri, was expected to take between four and five months.

The development of the project is projected to last 28 months starting in the first quarter of 2001, Tough said. (Hans Bodega)