Mumbai: Jindal Stainless Ltd has entered into an agreement with Indonesia's PT Antam Tbk for setting up a nickel smelting and stainless steel joint venture in Indonesia.
Jindal will have 45 per cent stake in the joint venture while Antam will hold majority 55 per cent in the nickel smelting and stainless steel facility, to be set up in South East Sulawesi, the two companies said in a joint statement.
The joint venture will involve total investment of about $700 million (Rs3,000 crore), including debt and equity.
The project will have an initial capacity of around 20,000 tonnes per annum (TPA) of a variety of nickel and around 250,000 TPA of stainless steel, mainly the high quality 300 series.
The two companies propose to commission a market survey soon to decide on the final end-product.
The joint venture will leverage on Antam's mining and nickel processing capabilities and local market experience and Jindal's expertise in stainless steel processing and its global marketing network.
The integrated project will process nickel ore from Antam's Mandiodo mines, which gives an average nickel grade of about 1.5 per cent.
The project will have a coal-based captive power plant, water treatment plant, seaport and other necessary infrastructure, including residential facilities for employees.
Construction work of the project, tentatively called PT Antam Jindal Stainless Indonesia, is likely to start in early 2009. The complex is expected to be commissioned by mid-2011.