New Delhi: With a view to develop a nickel smelting and stainless steel facility in North Konawe, Ratan Jindal-led Jindal Stainless has struck a deal with Indonesian mining and metals firm PT Antam to form a $700 million joint venture (JV), which will be located in Southeast Sulawesi (Indonesia). While PT Antam will have a 55 percent stake in the JV, Jindal Stainless will hold the balance 45 percent.

"The new venture would entail an investment of $700 million, of which 30 percent would be raised through equity and the balance would be in the form of debt," said Jindal Stainless director NC Mathur. The new plant will have a capacity of about 20,000 tonne per annum 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. "We already have a stainless steel plant in Indonesia. The new venture will strengthen our presence in the global stainless steel industry," Mathur said.