Indonesia's Antam, China firms in talks over $1.2 bn smelter

JAKARTA, April 13 (Reuters) - Indonesian gold and copper miner PT Aneka Tambang (ANTM.JK) said on Tuesday it is in talks with several Chinese firms about their possible investment in its $1.2 billion ferronickel smelter.

State-owned Antam said a decision about the investment may be reached when Chinese Premier Wen Jiabao visits Indonesia later this month.

Indonesia's 2009 mining law requires metal producers to process mining products locally, either at their own smelters or at other local smelters, unless production is relatively low.

"The response from the China investors looks promising and we are currently intensifying talks," said Alwin Syah Loebis, Antam's president director.

"However, we're still open for other investors to join the project," he added.

Loebis declined to name the potential investors.

The smelter, located in Halmahera, North Maluku, is expected to produce 20,000-27,000 tonnes of ferronickel a year and is due to start operating in 2014.

In December, Antam said that it would offer a 30-35 percent stake in the venture to foreign partners, while the remainder would be owned by Antam and local strategic partners.

The firm was in talks with potential firms from China, South Korea, and Japan.

Antam, which has a stock market capitalisation of about $2.6 billion, is involved in the exploration and production of nickel ore, bauxite and iron sands, smelting of ferronickel, and exploration, production and refining of gold and silver. (Reporting by Janeman Latul and Fitri Wulandari, Editing by Sara Webb)