Major mining firms report good results<\/p>\n
Hendarsyah Tarmizi, The Jakarta Post, Jakarta<\/p>\n
Indonesia's major nickel, gold and copper mining companies are
\nmostly performing well, despite the downward trend in the
\ncountry's mineral production.<\/p>\n
PT International Nickel Indonesia (Inco), PT Antam, PT Newmont
\nNusa Tenggara and PT Freeport Indonesia reported relatively good
\nresults in 2003, although they said the poor investment climate
\nin the mining sector continued to hamper their mining operations.<\/p>\n
In 2003, Inco, for example, booked a triple increase in its
\nnet earnings to US$104.2 million from $30.3 million in 2002,
\nthanks to an increase both in nickel price and production.<\/p>\n
The company produced 155 million pounds of nickel in matte
\n(70,200 tons) in 2003, an 18 percent increase from 13.21 million
\npounds in 2002.<\/p>\n
\"Our annual production of 155 million pounds of nickel in
\nmatte was the highest in history and substantially above our
\ninitial goal of 140 million pounds for 2003,\" said Bing R.
\nRobing, the company's president and chief executive officer.<\/p>\n
Inco's realized price for nickel in matte averaged $7,117 per
\nton ($3.23 per pound) in 2003, up from $5,114 per ton ($2.32 per
\npound) in 2002.<\/p>\n
Inco's senior supervisor for government relations and public
\naffairs, Rajeshanagara Sutedja, said the company expected to
\nincrease nickel production to 160 million pounds this year to
\ntake advantage of higher nickel prices in the world's metal
\nmarket.<\/p>\n
Rajeshanagara is upbeat the increase in the price of nickel
\nwill continue this year in line with an expected worldwide
\nincrease in demand.<\/p>\n
\"Power supply remains the bottleneck in our operation. With
\nmore power, we could produce more nickel in matte,\" he said,
\nadding that in cooperation with its Canada-based parent company
\nInco Ltd., Inco was now improving the power system in order to
\nget an additional power supply of 10 megawatts by later this
\nyear.<\/p>\n
Like Inco, diversified mining company PT Antam also reported
\ngood result in 2003.<\/p>\n
Antam, which produces nickel, gold, silver, bauxite and iron
\nsands, reported a consolidated operating profit (unaudited) of Rp
\n468 billion (about $55 million) in 2003, 66 percent higher than
\nthe previous corresponding year due mainly to increased revenue
\nresulting from higher gold and nickel prices.<\/p>\n
Gold prices rose 17 percent in 2003 while the prices of
\nnickel, saprolite nickel ore and limonite nickel rose 37 percent,
\n30 percent and 82 percent respectively during the year.<\/p>\n
In 2003, Antam's gold production reached 4,176 kg, exceeding
\nthe company's target of 4,100 kg, while silver production rose 12
\npercent to 28,570 kg over 2002.<\/p>\n
The company's production of contained nickel in ferronickel
\ntotaled 8,933 tons in 2003, below its target of 10,000 tons.<\/p>\n
For nickel ore, Antam largely met its internal target. In
\n2003, the company produced 3.3 million wmt (wet metric ton) of
\nsaprolite and 1.1 million wmt of limonite.<\/p>\n
\"In 2004, however, you should expect to see decreased
\nferronickel production and sales as we conduct the necessary full
\noverhaul of the FeNi II smelting plant. For other commodities, we
\nexpect stable production and sales,\" Antam investor relations
\ndirector Eko Indrawan told The Jakarta Post.<\/p>\n
PT Newmont Nusa Tenggara (NNT), which operates the Batu Hijau
\ngold and copper mine in West Nusa Tenggara, expects increased
\nproduction within the next few years in line with the company's
\ncommitment to improving its operations in the area.<\/p>\n
In 2003, Newmont produced 610,000 million pounds of copper and
\n585,000 ounces of gold at the Batu Hijau mine, one of the
\nyoungest gold and copper mines in the country. The copper
\nproduction in 2003 is slightly lower than 657 million pounds in
\n2002 but the gold production is higher than 492,516 ounces in
\n2002.<\/p>\n
\"With continued improvements in operating practices, we expect
\nsimilar level of production in 2004,\" the company's president
\ndirector, Robert Gallagher, said.<\/p>\n
PT NNT, which signed a fourth generation contract of work with
\nthe Indonesian government in 1986, has indicated a major
\nimprovement in production since the start of commercial
\nproduction at the company's Batu Hijau mine in March 2000.<\/p>\n
By December 2003, Batu Hijau's ore reserves were one billion
\ntons containing 0.525 percent copper and 0.37 grams per ton gold.
\nAt the current production rate, Batu Hijau's mine life will
\ncontinue until 2005.<\/p>\n
The company is currently exploring other parts of its contract
\nof work area, such as the Elang area.<\/p>\n
As a contractor of the government, PT NNT contributes
\nsignificantly to the nation's economy through employment,
\nroyalties and taxes, a large part of which return to the province
\nof West Nusa Tenggara.<\/p>\n
At present, PT NNT is responsible for the direct employment of
\nover 7,200 people, comprising 4,200 employees and 3,000 contract
\nemployees. Of these, more than 60 percent are from the province
\nof West Nusa Tenggara.<\/p>\n
The company said it also contributed about $35.90 million a
\nyear in taxes, non-taxes and royalties to the Indonesian
\ngovernment.<\/p>\n
Gallagher said that PT NNT would continue to improve its
\noperations and increase production, as well as maintaining its
\ncommitment to open, transparent and safe operations conducted in
\nan environmentally responsible manner that emphasizes partnership
\nand sustainable development of local communities.<\/p>\n
Freeport Indonesia also reported rosy 2003 results for the
\ncompany's mining operation in Mimika, Papua. The company's
\nGrasberg mine and surrounding minerals complex is well known as
\none of the greatest ore bodies in the world.<\/p>\n
Freeport's senior manager for corporate communications
\ndepartment, Siddharta Moersjid, said that the company's gold
\nsales volume increased 8 percent to 2.5 million ounces in 2003
\nfrom 2.3 million ounces in 2002 because of higher gold ore
\ngrades, partly offset by lower mill throughput.<\/p>\n
Copper sales, however, declined 15 percent to 1.3 billion
\npounds in 2003 from 1.5 billion pounds in 2002 because of lower
\ncopper ore grades, production and mill throughput.<\/p>\n
The company said that as a result of mine sequencing changes
\nat the open pit, a portion of the higher grade previously
\nforecast to be mined in 2004 is expected to be mined in 2005.<\/p>\n
\"We estimate 2004 production to be 1 billion pounds of copper
\nand 1.5 million ounces of gold, and 2005 production to be 1.5
\nbillion pounds of copper and 2.9 million ounces of gold,\" he
\nsaid.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/major-mining-firms-report-good-results-1447893297",
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