Antam reports 19% increase in sales

The Jakarta Post, Jakarta

State-owned mining company PT Aneka Tambang said on Friday that sales surged by 19 percent last year on higher volumes and prices for its main commodities.

Antam's corporate secretary, Dohar Siregar, told The Jakarta Post that the increase in sales was mostly attributable to higher volumes and prices for ferronickel, Antam's most important commodity.

He said that sales surged to Rp 2.04 trillion (US$242 million) last year from Rp 1.71 trillion in 2002, with 85 percent of the revenues being derived from exports.

Last year, Antam's ferronickel production soared by 8 percent to 8,868 tons from 8,227 tons in 2002, while the price surged by 37 percent to $4.19 per pound. Around 65 percent of Antam's revenue last year was derived from the ferronickel and nickel businesses.

Antam is currently constructing a new smelter at its nickel mine in Pomalaa, South Sulawesi, to increase production to 15,000 tons a year. Antam currently produces 11,000 tons of nickel annually from its two existing smelters.

The company, which is listed in Jakarta and Australia, also said that gold production last year rose to 4,176 kilograms, exceeding the company's target of 4,100 kilograms.

According to Dohar, in a bid to cap its declining gold reserve Antam plans to acquire a number of gold prospecting companies this year, with one company expected to cost around $10 million.

Antam shares ended lower on the Jakarta Stock Exchange on Friday by Rp 50 to Rp 1,500.

The government still holds a 65 percent stake in Antam, while the remaining 35 percent is owned by the investing public. The government plans to sell 14 percent of its shares this year to raise cash to help finance the state budget deficit, which is estimated to reach around Rp 24.41 trillion this year.