Antam, BHP form alliance to develop Halmahera nickel deposits

Jakarta (ANTARA News) - Publicly-listed mining company PT Antam Tbk announced on Tuesday it has signed a heads of agreement establishing an alliance with BHP Billiton to explore the joint development of an extensive nickel laterite resource on the eastern Indonesian island of Halmahera.

The heads of agreement was signed in Perth, Australia, during the Asia Pacific Economic Conference by Antam`s President Director, D. Aditya Sumanagara and BHP Billiton Stainless Steel Materials President, Jimmy Wilson.

The alliance will investigate development of pyrometallurgical and hydrometallurgical processing routes for the Buli deposit on the island and other ore bodies, it said.

This move is in line with Antam`s strategy to move into higher technology and downstream metals processing activities. This strategic alliance with BHP Billiton is also expected to mitigate the cost and risk of developing mineral deposits.

"Mining and metals processing is a capital intensive, long term business. With this move, which is still many years away, we hope to ensure our future competitiveness in the nickel sector. The alliance would immediately commence a project study to develop hydrometallurgical and pyrometallurgical processing technologies on Halmahera Island," Sumanagara said.

The project study represented a significant opportunity to jointly develop a world class nickel resource with considerable long term benefits to Indonesia.

Through the alliance study, Antam and BHP Billiton are committed to achieving leading mining industry best standards in safety, environmental and community practice.

The project study phase will provide employment and support local businesses.

Following the signing, Antam and BHP Billiton will move towards the formation of a joint venture company for the alliance. Antam and BHP Billiton expect the joint venture agreement will be completed by end of 2007.