Aneka Tambang floats shares on London exchange

JAKARTA (JP): PT Aneka Tambang, a state-owned general mining company, would float its shares on local and overseas stock exchanges later this year, the company's finance director said yesterday.

Ki Agus Umar Tochfa said the company was ready to launch the initial public offering (IPO) and would list the company's shares on the Jakarta, Surabaya and London stock exchanges.

"The listing will surely be this year, not next year," he said.

He said state-run PT Danareksa Securities and Bahana Securities would become lead underwriters for the company's IPO.

But he declined to mention the total shares to be floated and total funds to raise from the public.

"We cannot tell you the amount as it is not our right to disclose that," he said, adding that the ministry of finance as the company's nominee shareholder would determine it.

He said the company was currently making due diligence with its underwriters.

But some sources said the company would offer about 35 percent of its enlarged shares to raise about Rp 1.4 trillion (US$560 million).

Umar said yesterday proceeds from the IPO would be used to expand the company's mining operations.

"But if the government wants to use some of the proceeds, it is up to them," he said.

Umar declined to disclose the company's financial performance or the profit estimate for this year.

Sources said the company expected to book a net profit of Rp 69 billion (US$27.6 million) this year up from Rp 44.29 billion in 1996.

Umar said sales last year totaled Rp 379.19 billion.

Aneka Tambang, which recorded total assets of Rp 600 billion in 1996, has three main core mining businesses: nickel, gold and industrial mineral.

He said the company's nickel operation contributed 71 percent to the company's profit in 1996, gold 20 percent and industrial minerals 9 percent.

"The composition is expected to remain similar this year," he said.

The company's development director D. Aditya Sumanagara said yesterday the company had received new contracts of work (COW) to open up gold and nickel mining in the country.

He said the contracts would cover gold mining explorations in several provinces including Maluku, South Kalimantan, Sumbawa, East Nusa Tenggara and West Sumatra in cooperation with Australian companies New Crest, MMC and Western Mining.

He said the contracts would also allow the company to open up a nickel mine in Gag, Sulawesi in cooperation with Australia's Broken Hill Proprietary (BHP).

"Initial investment for nickel mining projects will be about $500 million," he said.

He said the company has two industrial mineral plants: Cilacap produces 425,000 tons of iron sand and Bintan produces 800,000 tons of bauxite per annum.

"Iron sand from Cilacap is used by domestic cement makers while bauxite in Bintan is exported to Japan," he said. (aly)