Aneka Tambang to export nickel to Taiwan

Aneka Tambang to export nickel to Taiwan

JAKARTA (JP): The state-owned general mining firm PT Aneka
Tambang yesterday signed a long-term contract with the giant
stainless steel producer Yieh United Steel Co. of Taiwan for the
sale of 25,100 tons of ferronickel for three consecutive years.

The agreement was signed by Aneka Tambang's president, Darmoko
Slamet, and the managing director of the Yieh United Steel,
Hsien-Hsiang Wei, at the Aneka Tambang's headquarters here
yesterday.

"Today's agreement is marked by an initial purchase of 1,250
tons of ferronickel by the Taiwanese company," Darmoko said,
adding that a total of 6,600 tons would be delivered this year,
some 7,900 tons next year and 10,600 tons in 1997.

"The contract, which was the second signed by Aneka Tambang
this year, clearly shows the confidence of foreign steel
producers in the quality of our product," he said.

Early this year, the company clinched a five-year contract
with the Seoul-based Pohang Iron & Steel Co. Ltd. of South Korea
for the sale of 2,400 tons of ferronickel per year.

"The prices will be based on market developments," he added.

He did not elaborate on the value of the new deal but said the
company expected to bring in annual revenues of US$20.4 million
from its deal with Pohang Iron.

Anticipating the rapidly increasing demand for its
ferronickel, Aneka Tambang, which doubled its annual nickel
production capacity to 11,000 tons last year, plans to double its
capacity to 22,000 tons (with 110,000 tons of ferronickel
content) by the year 2000, he said.

Aneka Tambang currently operates two processing plants in
Pomalaa, Southeast Sulawesi. It is now preparing the
establishment of two other plants worth about $300 million and
with a combined annual capacity of 11,000 tons of nickel, he
said.

He said that Yieh United Steel will increase its purchase of
Aneka Tambang's nickel to 14,330 tons next year and 19,400 tons
in 1997.

Darmoko said he was optimistic about the prospects of the
ferronickel market this year.

Nickel prices increased to an average of US$4 per pound over
the last few months from $3 last year.

Nickel prices steadily declined from $6.27 per pound in 1988
to their lowest level of $1.83 in September 1993, as result of a
worldwide economic recession and an oversupply due to the
entrance of the former Soviet Union into the world market.

It operates nickel mines and processing plants in Southeast
Sulawesi and Maluku, a gold mine in Cikotok, West Java, a bauxite
mine on Bintan Island in Riau, and a metal smelting and refining
plant in Jakarta. (fhp)