Jakarta, May 23, 2014 - PT ANTAM (Persero) Tbk (ASX - ATM; IDX – ANTM; ANTAM) is pleased to announce the signing of a US$100 million export credit facility agreements today at ANTAM's Head Office. The investment credit facilities were provided to ANTAM by Indonesia Eximbank. The agreements will be effective when certain conditions are met.
The investment credit facilities were provided to fund ANTAM's general purpose funding requirements as well to help fund the Pomalaa Ferronickel Plant Expansion Project. The US$100 million facility agreement signed today was part of the total US$160 million credit facilities provided to ANTAM with the Indonesia Eximbank provided a principle agreement over the remaining US$60 million facility. The export credit facilities have a 10 year tenor with a grace period of 2 year and a balloon repayment structure.
ANTAM's President Director, Tato Miraza said:
"Inline with the signing of the credit facilities, ANTAM is committed to accelerating the completion of the Pomalaa Ferronickel Plant Expansion Project to benefit from the recent rally of nickel prices due to the Indonesia export ban policy. We are committed toward our growth efforts to maximise stakeholder value."
ANTAM's Pomalaa Ferronickel Plant Expansion Project is estimated to cost between US$500-600 million. Following the completion of the project, ANTAM expects the capacity of its ferronickel production will significantly increase from 18,000-20,000 tonnes of nickel contained in ferronickel (TNi) to 27,000-30,000 TNi. The Pomalaa Ferronickel Plant Expansion Project started construction on February 7, 2013 with the Electric Furnace facility to commence commissioning at the end of 2014 and the overall project to commence commissioning in 2015. ANTAM’s Pomalaa Ferronickel Plant Expansion Project is also financed by ANTAM’s Rupiah bonds which were issued at the end of 2011. As of end of first quarter of 2014, the EPC progress of the project reached 40%.
