Antam To Spend US$550 Mln On Expansion

Kolaka, Nov 1 (Antara) - State-owned mining company PT Antam Tbk will spend US$550 million on expansion project increasing the productivity of its ferro-nickel plants in Pomalaa, Southeast Sulawesi. The project will also include construction of a diesel power plant, a jetty, belt conveyor, and other facility, Antam president Tato Miraza said in Pomalaa on Friday. When asked the reason prompting the expansion while the price of nickel is sinking, Tato said "we built the first and second units of ferro-nickel plant several years ago also when the price of nickel was declining." Nickel price fell to US$6 per kilogram at present from US$24 last year. He said fund for the project has been available at Rp3 trillion raised from the sales of bonds in December 2011 . He said the expansion projects is handled by a consortium of local and foreign contractors to be completed in July 2015. He said work is already in progress with completion reaching 25 percent, he said. He said he has asked the contractor to finish the work as scheduled to be ready when the price of nickel is expected to rise in 2015.