<article>Indonesia&#8217;s state-run gold and nickel miner <a style="color: #000080;" href="http://www.antam.com">PT Aneka Tambang Tbk</a> (ANTM) has got shareholders&#8217; approval to launch a rights issue, which will raise Rp 5.38 trillion ($378.87 million).</article>

Indonesia&#8217;s state-run gold and nickel miner <a style="color: #000080;" href="http://www.antam.com">PT Aneka Tambang Tbk</a> (ANTM) has got shareholders&#8217; approval to launch a rights issue, which will raise Rp 5.38 trillion ($378.87 million).
The company will offer 14.492 billion new shares under the scheme. Every registered shareholder with 310 old shares will get 471 new shares at Rp 371 per share.
Aneka Tambang President Director Teddy Badrujaman said, major portion of the rights issue proceeds will be used to fund the construction of the first phase of Ferronickel plant in East Halmahera, Maluku province, including the construction of processing and refining facilities and supporting infrastructure.
The key shareholder, in this case, the government, will exercise its rights in accordance with the state rules on capital increase
The first phase of the Ferronickel plant, which is expected to complete by 2018, requires Rp3.5 trillion to generate output of 13,500 to 15,000 tonne per year. As of August 2015, the contractor has completed the construction of supporting facilities such as camp sites, main office, port and jetty and water intake facility. The project progress represents 6% of total project.
The remaining portion of the rights issue proceeds will be used to finance the company&#8217;s working capital operations, including cost of goods sold and operating expenses, as well as business development costs related to increased production capacity.
The rights issue will be offered on October 15-20, 2015, followed by distribution of rights on October 21.
In a related development, Aneka Tambang and <a style="color: #000080;" href="http://www.inalum.co.id">PT Asahan Aluminium</a> (Inalum) have signed an agreement to set up a joint venture company to develop smelter grade alumina (SGA) project in Mempawah, West Kalimantan, to boost the value of bauxite reserves in the country.
Antam and Inalum aimed to have around a 55 per cent stake in the new JV. The SGA plant, once in operation, will help Antam boost value of its bauxite ores. Last year, Antam’s bauxite reserves hit around 1 billion metric tonne and could supply the company’s need for over half a century.
Indonesia is currently the world’s fourth-largest bauxite producer with total production of around 30 million tonne a year, trailing behind Australia, China and Brazil. Early 2014, the government imposed a new regulation prohibiting mining companies from exporting mineral ores while allowing exports for certain levels of mineral concentrates only if the companies are committed to building smelters by 2017.
The SGA project is estimated to cost around $1.7 billion and is expected to have an annual capacity of 1.6 million metric tonne.
Aneka Tambang is set to reduce this year’s capital expenditure to 1.72 trillion rupiah ($128 million) from the 2.3 trillion rupiah previously allocated.
Also Read : <a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/indonesias-aneka-tambang-seeks-to-raise-376-2m-via-rights-issue-11173/">Indonesia’s Aneka Tambang seeks to raise $376.2m via rights issue</a>

Indonesia state-run gold and nickel miner PT Aneka Tambang Tbk (ANTM) has secured approval from its shareholders to launch rights issue aiming at generating funds worth Rp 5.38 trillion ($378.87 million).

Indonesia metal miner Aneka Tambang to raise $378.87m via rights issue

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Indonesia metal miner Aneka Tambang to raise $378.87m via rights issue

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief