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)