Jindal Stainless in JV with Indonesian firm PT Antam for Rs.2900-cr facility

Ratan Jindal-led Jindal Stainless has entered into an agreement with Indonesian mining and metals firm PT Antam to form a $700-million joint venture to develop a nickel smelting and stainless steel facility in North Konawe, Southeast Sulawesi (Indonesia). While PT Antam will have a 55% stake in the JV, Jindal Stainless will hold the balance 45%.

The new venture would entail an investment of $700 million (Rs 2,900 crore approx), of which 30% would be raised through equity and the balance would be in the form of debt. The new plant will have a capacity of close to 20,000 tonne per annum (tpa) of contained nickel in the form of ferro-nickel and 2.5 lakh tpa of stainless steel. The facility will also have its own coal-based captive power plant and water-treatment plant, besides residential facilities for its employees.

While the construction work would begin from early next year, the plant would be commissioned by mid-2011. Under the terms of the agreement, while PT Antam will share its expertise in mining and nickel processing, Jindal Stainless will provide expertise in stainless steel processing and marketing. With Jindal Stainless already having a stainless steel plant in Indonesia, the new venture would strengthen its presence in the global stainless steel industry.