Eramet to Spend $6 Billion in Indonesia, Minister Says
Agus Suhana and Yoga Rusmana. Bloomberg, 07/09/2011
Eramet (ERA) SA, operator of the world’s biggest ferronickel plant, plans to invest a total of $6 billion on the Weda Bay nickel project in Indonesia, the nation’s Coordinating Minister for the Economy Hatta Rajasa said.
“The Eramet project will open economic opportunity in eastern Indonesia, especially in the fifth economic corridor covering Papua, Maluku and North Maluku provinces,” Rajasa told a press conference after a meeting today between Eramet Chief Executive Officer Patrick Buffet and President Susilo Bambang Yudhoyono. The investment would be undertaken in two stages each costing $3 billion, he said.
Indonesia is trying to lure investors to help accelerate growth and improve the welfare of 238 million people in Southeast Asia’s biggest economy. Yudhoyono, who plans to double spending on roads, ports and airports to $140 billion by the end of his term in 2014, unveiled six economic “corridors” in June focusing on industries including foodstuffs, energy, plantations, fishery and mining.
Paris-based Eramet will have spent $450 million on the Weda Bay project when the final investment decision is proposed to the board of directors by the end of 2012, Buffet said. The project is in Halmahera in Indonesia’s North Maluku province.
The project, which is partly owned by Mitsubishi Corp. (8058) and PT Aneka Tambang, will include a hydro-metallurgical plant, airport and power plant, Buffet said. Nickel output is estimated at about 35,000 metric tons a year in the first stage and a further 30,000 tons in the second stage, he added.
Aneka Tambang gained 2.7 percent to 1,940 rupiah a share in Jakarta trading at 2:34 p.m. local time.