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ANTAM Signs EPC Contract Of 2 X 30 MW Coal Fired Power Plants For Pomalaa Modernisation And Optimisation Project

12/17/2012
News Releases

Jakarta, December 17th, 2012 – PT ANTAM (Persero) Tbk (ASX – ATM, IDX – ANTM, ANTAM) is pleased to announce the signing of the Engineering, Procurement and Construction (EPC) contract of its coal fired power plants relating to the modernisation and optimisation of the Pomalaa ferronickel smelters. The Circulating Fluidised Bed (CFB)-type coal fired power plants have a capacity of 2 x 30 MW and will be built by Sumitomo Corporation as the main contractor. The EPC cost of the power plants is US$145 million. Following the operations of the coal fired power plants, ANTAM's ferronickel energy cost may decrease between 15% to 20%.

Construction on the power plants is intended to provide electricity for the auxiliaries of the company's FeNi I, FeNi II and FeNi III ferronickel smelters. ANTAM is currently modernising and optimising its FeNi I smelter at Pomalaa which has been operational since 1976. The modernisation and optimisation project also includes the development of a larger jetty and belt conveyors to transport nickel ore feed to the smelters. Construction on the coal fired power plants is expected to last 25 months for the first unit and 28 months for the second unit. The power plants will require approximately 300,000 tons of low grade coal annually, with a 4,200 kcal/kg (GAR) calorific value.

ANTAM is also pleased to announce that the construction of its downstream projects is on track. For example, as of the end of October 2012, the construction of the Tayan CGA project has reached 81.5%, with commissioning to be expected at the end of 2013.

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