Aneka Tambang profits doubled last year

JAKARTA (JP): Publicly listed state mining company PT Aneka Tambang has said its unaudited net profit doubled to Rp 66 billion (US$8.25 million) last year.

"Profit was within the target," company president Dedy Aditya Sumanegara said at a breaking of the fast gathering Tuesday.

He said the company's unaudited sales last year were about Rp 419.3 billion, up from Rp 379.9 billion in 1996.

Dedy said the current regional monetary crisis had affected much of the country's economy but had increased the revenue of resource-based companies like Aneka Tambang.

Aneka Tambang exports 95 percent of its products. Most export earnings are in dollars while 70 percent of its expenditures are in rupiah.

Aneka Tambang finance director Ki Agus Umar Tochfa said the company projected its profit to increase to Rp 157 billion this year based on the rate of Rp 4,000 to the dollar.

"Profit will be more if the dollar's value stays above the 4,000 rate," Tochfa said.

Aneka Tambang sold 430.76 million shares in November on the Jakarta and Surabaya stock exchanges to generate Rp 603.07 billion in proceeds.

The company mines nickel, gold, silver, bauxite and iron sand throughout the country.

Nickel contributes 70 percent of its profit, gold 20 percent and others 10 percent.

Dedy said the company had completed expansion of its gold mine in Pongkor, West Java, in November to raise the mine's output to four tons a year from two tons. The mine would further be expanded to produce five tons annually starting in 1999.

Silver output is expected to increase to 22,700 kilograms this year from 15,540 kg last year, while bauxite output is expected to increase to 850,000 tons from 808,700 tons.

Iron sand output is projected at 575,000 tons this year, up from 487,000 tons last year.

Nickel output is predicted to decrease to 8,350 tons a year from about 10,000 tons as the company plans to overhaul its power plant in Pomalaa, South Sulawesi.

Dedy earlier said the company had allocated Rp 2 trillion to expand its nickel operation in Pomalaa, including for the revamping of its Pomalaa II production plant, the construction of the Pomalaa III production plant and a 110-megawatt (MW) coal- fired power plant.

He said the revamping and construction of the facilities would start later this year and were scheduled to be completed between 1999 and 2000.

He said the Pomalaa III plant, when completed, would boost the company's nickel output to 23,000 tons per year.

According to Dedy, Aneka Tambang is a world-class gold and nickel producer with low costs of production.

It cost the company about $147 to produce an ounce of gold and $1.84 to produce one pound of nickel last year. (jsk)