Aneka Tambang Persero Tbk PT : ANTAM Completes the Construction of 2x30MW Coal Fired Power Plant as Part of the Pomalaa Ferronickel Plant Expansion Project

Jakarta, October 10, 2016 - PT ANTAM (Persero) Tbk (IDX: ANTM; ASX: ATM; ANTAM) is pleased to announce that the Company has completed the construction of the 2 x 30 MW coal fired power plant as part of the Pomalaa Ferronickel Plant Expansion Project (P3FP). Inline with the completion of the coal fired power plant, ANTAM is currently finalizing the overall project completion with estimated commercial operation at the end of 2016. Construction of the coal fired power plant is the 8th project package or the last package of P3FP.

ANTAM's President Director, Tedy Badrujaman said,
' The completion of the coal fired power plant reflects the expansion of our ferronickel production remains on track. The P3FP will increase ANTAM's annual ferronickel production capacity from 18,000-20,000 tonnes of contained nickel in ferronickel (TNi) to 27,000-30,000 TNi. Following the operations of the coal fired power plant, our ferronickel energy cost may be lowered by 15%-20%. Inline with lower production cost, higher production capacity as well as higher domestic nickel ore sales, we believe our nickel business will remain bright and deliver solid returns and profitability. '

ANTAM's Circulating Fluidised Bed (CFB)-type coal fired power plant has a capacity 2x30MW with an EPC cost of US$145 million. Sumitomo Corporation is the main contractor of the power plant. The construction of the Pomalaa coal fired power plant aims to support the electricity requirement of the ferronickel plant. The Pomalaa coal fired power plant requires approximately 300,000 tons of low calorific coal annually with calorific value of 4,200 kcal/kg (GAR).

As the completion of the coal fired power plant is also expected to lower the ferronickel cash costs, ANTAM expects to maintain its position as one of the low cost ferronickel producers.