Aneka Tambang clarifies

Aneka Tambang clarifies

I refer to your news article German bank to finance
ferronickel project on Oct. 14, 1999. The article updated the
current status of PT Aneka Tambang's FeNI III Nickel Expansion
Project.

I would like to clarify that the preliminary funding
arrangements with German banks are progressing favorably. Aneka
Tambang is pleased with the current progress being made, as the
Company's Preferred Engineering, Procurement and Construction
(EPC) Bidder has confirmed its willingness to include German
companies within its consortium. This has, therefore, caused
German banks to seek the opportunity of financing this project.
However, unlike reported in the article, the funding has not yet
been secured.

Second, the EPC price for the project has yet to be negotiated
and as such, is not US$250 million, as reported in the article.

DOHAR SIREGAR

Corporate Secretary

PT Aneka Tambang

Jakarta