Antam has high hopes for gold production
Antam has high hopes for gold production
The Jakarta Post, Jakarta
State mining firm PT Aneka Tambang (Antam) has forecast its gold
production to increase by 6.6 percent this year, following the
full operation of its gold mine after being disrupted by fire.
The publicly listed company also projected ferronickel
production to soar higher by 33.3 percent this year after it
completed the maintenance of its ferronickel factory, which has
been closed since September.
Antam president director Dedy Aditya Sumanagara said gold
production was expected to increase to about 4,000 kilograms this
year from 3,750 kilograms last year.
"Our gold production is expected to run normally after the
fire last year, which caused the company to miss its gold
production target of 4,000 kilograms," said Dedy after a ceremony
on Monday.
The Antam gold mine in Bogor, south of Jakarta, was closed for
10 days last March, after 13 illegal miners were trapped and died
of asphyxiation inside the company's mining concession following
a fire at one of illegal mines operated by the illegal miners.
Dedy said the higher gold production was expected to be
supported with higher prices this year following an estimated
decline in the value of the U.S. dollar. Global bullion price is
usually higher when the greenback is valued lower, or when there
is a large-scale war and security disturbances worldwide.
About 18 percent of Antam's revenue comes from gold sales. The
larger chunk of the company's revenue comes from its nickel
business.
Dedy said ferronickel production for this year was projected
at about 10,000 tons higher than 7,500 tons last year.
Ferronickel is a raw material from which nickel is derived.
Nickel is mostly used for stainless steel and for some automotive
components.
Antam had previously said the average price for nickel
contained in ferronickel was likely to stand at between US$4.50
and $5 per pound this year, down from the current average of
$6.19 per pound last year, as metal brokers are expected to
reduce speculation activities on the commodity.
The price of nickel skyrocketed to a record high last year,
spurred by strong global demand, particularly from China, amid a
limited supply following disruptions in the operations of a
number of giant nickel producers.
Antam is 65 percent owned by the government and 35 percent by
the investing public.
The company's shares ended lower by Rp 40 at Rp 1,740 on the
Jakarta Stock Exchange on Monday.