Antam reports 19% increase in sales

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.