Stainless steel maker Jindal Stainless has informed that the company has signed a joint venture agreement with Indonesian mining major PT Antam Tbk to develop a nickel smelting and stainless steel plant in South East Sulawesi (Indonesia).

The total investment is estimated at about US$ 700 million (about Rs 841.48 crore), which will be funded with an optimum mix of debt and equity.

As per the agreement, Antam will contribute its mining and nickel processing expertise as well as its local knowledge and experience. Jindal will contribute its stainless steel processing and marketing expertise as well as its global marketing network for the sales and distribution of the joint venture's products.

Antam will hold 55% share in the JV named “PT Antam Jindal Stainless Indonesia” while, Jindal will hold the remaining 45 %.

The joint venture facility will have an initial capacity of around 20,000 tons per annum of contained nickel and around 250,000 tpa for stainless steel.

The construction of the project is scheduled to begin early 2009 and the facility is expected to be commissioned by middle of 2011.