Singapore 03/05/2016 - Indonesia's PT Aneka Tambang (Antam) and Germany's Cronimet Holding and Ferrostaal Industrial Projects have signed an agreement to jointly develop a ferronickel plant in Pomalaa, Southeast Sulawesi in Indonesia, Antam said.
Following the outcome of a preliminary study, the proposed project may process 1.85 million wet tonnes of nickel ore per year into 19,500 tonnes per year of ferronickel with a minimum nickel content of 15 percent, Antam said in a statement.
Under the agreement, the three companies will also explore possibilities to develop nickel deposits owned by Antam. In addition, the Indonesian miner will supply nickel ore feed with at least 1.6-percent nickel content to the ferronickel facility.
The initial estimated project cost is $800 million, with Antam likely to take a 25-percent stake in the project and Cronimet and Ferrostaal the remaining 75 percent.
Cronimet, which also owns a copper and molybdenum mine in Armenia, is a stainless steel and metal scrap producer and trader.
Ferrostaal is an industrial plant and equipment provider.
(Editing by Mark Shaw)