Antam and Direct Nickel seek financing for nickel project in Halmahera

State mining company Aneka Tambang or Antam and Australian miner Direct Nickel seek financing for a project worth as much as AUD 1 billion for mining nickel laterite deposits and setting up processing plants in Halmahera, North Maluku.

Mr Djaja Tambunan finance director of Antam said that the company has a 15% interest in the Halmahera project, while the rest is controlled by the Australian miner. Investment in the project is estimated at around AUD 800 million to AUD 1 billion. This project’s cost is huge. Direct Nickel is also looking around for financing. The plant’s location has been decided. It will be close to Antam’s plant in Halmahera.

Djaja said that Antam holds a minority interest in the project, but it can exercise an option to increase ownership to more than 50%. It’s still a long way to go for development. I can’t comment much further. Our focus now is to complete Antam’s various projects in line with the timeframe target.

Antam and Direct Nickel in July last year signed an agreement to cooperate in the development of the Halmahera project. The agreement paved the way for Antam to utilize Direct Nickel’s testing plant in Perth, Australia to manufacture nickel mixed hydroxide products before taking action on the Halmahera project.

The feasibility study for the Halmahera project is expected to be completed in early 2015 and in the early stage of operation, the plant is expected to process 10,000 tonnes to 15,000 tonnes of nickel products per year.