Aneka Tambang's net profit skyrockets in first quarter

JAKARTA (JP): Publicly listed state general mining company PT Aneka Tambang announced yesterday its net profit for the first quarter of this year was 15 times higher than for the commensurate period last year, and marked a 162 percent increase over 1997's total profit.

Company president Dedy Aditya Sumanegara confirmed the first quarter profit of Rp 112.45 billion (about US$11.24 million) outstripped the 1997 first quarter figure of Rp 7.56 billion, and the Rp 69.52 billion for last year.

"The windfall profit was caused by the fall in the rupiah's value against the dollar and the success of the company efficiency program," Dedy said after the annual shareholders meeting.

He said the average exchange rate for the rupiah was Rp 9,091 per dollar in the first quarter of the year, compared with the average exchange rate of Rp 3,100 throughout last year and Rp 2,379 in the first quarter of last year.

Prices of several Aneka Tambang's products, including nickel and gold, on the international market decreased in the first quarter of the year compared to prices in the same period last year, Dedy said.

But the company was able to increase its sales volume throughout the period to maintain high earnings, he added.

The company's core business is ferronickel production, with its major mining field located in Pomalaa, South Sulawesi. It also mines gold, silver, bauxite and iron sand in many parts of the country.

Dedy said the company exported 70 percent of its products and most of its products sold domestically were also based on U.S. dollar rates.

Dedy also said the shareholders meeting agreed to distribute 40 percent of its 1997 profit, or Rp 22.59 per share, as dividend.

The meeting also agreed with the company's plan to list its shares outside the country.

"Maybe, we shall list our shares in Australia by early next year. Australia has a strong mining industry, (and) knows Indonesia very well," Dedy said.

Aneka Tambang is now listed on the Jakarta Stock Exchange.

Director of development Subagyo said the company would invest Rp 76.8 billion ($7.6 million) to modernize its 23-year-old first ferronickle plant in Pomalaa starting in September.

The plant has production capacity of 5,500 tons.

The company would invest another Rp 281.4 billion to build its third ferronickel plant also in Pomalaa with a capacity of 13,000 tons starting next year.

Several companies from Germany, Japan, the United States, Norway and Britain are bidding for development and financing of the project, Subagyo said.

Operation of the third plant will bring the company's ferronickel output to 24,000 tons in 2001 from about 9,000 tons at present. (jsk)