By Fitri Wulandari
JAKARTA (Reuters) - Indonesia's state-owned mining firm, PT Aneka Tambang Tbk ANTM.JK, said on Wednesday it expected to finalize a bid for Australian miner Herald Resources Ltd (HER.AX: Quote, Profile, Research, Stock Buzz) and acquire other gold assets this year.
Dedi Aditya Sumanegara, Antam's president director, said that an expected firm nickel price this year would help raise sufficient funds to finance its acquisition plans.
"Our strategy this year is to complete our M&A program," Nickel prices are likely to remain good this year which will help us to have strong cash," Sumanagara said at this week's Reuters Global Mining Summit.
Sumanagara said nickel prices may remain firm this year at around $14 per pound ($30,865 a tonne), although it would be lower than $16.2 per pound in 2007, on concern that global economic worries may dent demand from stainless steel makers.
He said surging metal prices have allowed the firm to book net cash of $500 million this year.
Antam and China's Shenzhen Zhongjin Lingnan Nonfemet Co Ltd (000060.SZ: Quote, Profile, Research, Stock Buzz) has bid around A$500 million for Australian miner Herald Resources Ltd (HER.AX: Quote, Profile, Research, Stock Buzz).
The company is also in the process of short-listing a number of gold producing assets as part of a plan to step up gold and bauxite business while reducing reliance on nickel.
But Sumanegara declined to name a potential gold acquisition target. Continued...
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