The Jakarta Globe reported that, in a move expected to give eastern Indonesia an economic boost, Eramet plans to invest in a nickel mining project in North Malaku.

Mr Patrick Buffet chairman & CEO of Eramet said that "Eramet will have spent around USD 450 million on this project before the final investment decision."

He added that the USD 450 million is part of the first phase of a USD 6 billion investment that would develop a nickel and cobalt mine as well as a processing plant on North Malaku's Halmahera Island.

He added that Eramet would provide a complete investment plan for the project by the end of 2012 after settling permits and agreements on key issues with the Indonesian government.

After the first phase is complete, the Weda Bay Nickel project is expected to produce 35,000 tonnes of nickel a year. After the second phase, that should increase to 65,000 tonnes.

Mr Buffet said the project could employ about 6,000 people. It will include the development of several mining centers in Halmahera, a hydro metallurgical plant and facilities that provide electricity, water treatment and other basic infrastructure like roads and housing.

Mr Hatta Rajasa, the coordinating minister for the economy, said that the president welcomed the plan. He said that "This is one of the biggest investments in eastern Indonesia and will support the government's Master Plan for the Acceleration and Expansion of Indonesia's Economic Growth."

Mr Darwin Zahedy Saleh energy minister said that the project should be completed by 2015.

Eramet has mining operations in New Caledonia for nickel and in Gabon for manganese. Weda Bay Nickel is a JV with Japanese trading house Mitsubishi and Indonesian state owned miner Aneka Tambang, commonly known as Antam. Eramet holds a stake of 54%, Antam 10% and Mitsubishi the remainder.

(Sourced from www.thejakartaglobe.com)