Antam may receive financing from Chinese lenders

Antam may soon receive financial aid from China Development Bank (CDB) and Industrial and Commercial Bank of China (ICBC) worth US$ 50 billion according to reports.

The company is struggling with its finances and production maybe stalled in the absence of adequate funding sine the House has approved only half of the capital injection requested by the state-owned mining firm.

State-Owned Enterprises (SOEs) Minister Rini Soemarno apparently said on Friday that 20 percent of the lump sum will be invested in developing the state electricity firm allowing it to expand its power plants and transmission lines. The rest would be invested in other infrastructure projects with about $1 billion to be directly invested in Antam.

Antam needs substantial funds to run its SGA plant which has an estimated annual production capacity of 1.2 million tons of alumina.

The feasibility tests for the plant are completed and the plant is scheduled to be commissioned in 2017 but with an estimated cost of $1.7 billion, it needs external investments as the company finances are weak due to the ban on mineral ore exports.

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