ANTM eyes for bank credit

JAKARTA. PT Aneka Tambang Tbk (ANTM) is preparing to expand its business in 2017. Recently, ANTM is planning to establish ferronickel factory the second phase of East Halmahera (Haltim) or P3FH. ANTM has appointed the consortium of Kawasaki Heavy Industries Ltd (KHI) and PT Wijaya Karya Tbk (WIKA) to handle engineering, procurement, and construction (EPC). “The construction process will commence immediately”, said President Director of ANTM Tedy Badrujaman at Indonesia Stock Exchange (IDX) Building on Monday (3/10).

The fabric will increase its fero nickel production capacity from 27,000-30,000TNi to 40,500-43,500Tni per year. This project will also support the stainless steel basic industry program.

According to Antam, the first phase of the ferronickel factory will enter the commissioning stage at the end of 2018. Meanwhile, the second phase of the factory will commence in 2017 with a total investment amounts to IDR3.5 trillion.

According to Tedy, ANTM is considering to apply for bank credit to fund the project, as well as to build strategic parnership with other parties.

Financial Director of ANTM Dimas Wikan Pramuditho said that the second phase of East Halmahera factory will have a 13,500Tni of production capacity per year. ANTM will also build supporting infrastructures, such as steam electricity power plant (PLTU) with a capacity of 80MW. ANTM will join with PT Bukit Asam Tbk (PTBA) to build this  power plant. Corporate Secretary of ANTM Trenggono Sutioso added, ANTM is now formulating the funding scheme for the power plant project.

Indonesia Stock Exchange (IDX) will involve ANTM in dual listing training in New York, the United States of America (the US) on 24-25 October 2016. Recently, ANTM is also conducting feasibility study about listing on the US stock exchange.

According to Dimas, the dual listing will help ANTM to increase its global competitiveness. Aside of on IDX, ANTM has been listed on Australia Stock Exchange (ASX) since 9 August 1999. Currently, the Government of Republic of Indonesia and public control 65% and 35% of ANTM shares, respectively.

Analyst at Samuel Sekuritas Indonesia Sharlita Malik estimated that ANTM’s performance has improved after the government conducted review on deregulating nickel ore export in 2017. ANTM performance is also supported by the increase in nickel price and additional production capacity from Pomalaa smelter.

Sharlita suggest investors to but ANTM shares at the price of IDR840 per a share. ANTM share was closed lower by 1.83% to IDR805 per a share on Monday (3/9) trade.

(Muhammad Farid/Translator)