Antam shuts down production unit

State-owned mining company PT Aneka Tambang (Antam) announced on Thursday that it had temporarily closed down its ferronickel factory for a scheduled maintenance, causing the company's production to decline by 10 percent this year.

Antam said in a statement that the maintenance work, which was scheduled to take place once every eight years, would take around four months to complete at a cost of US$15 million.

The publicly listed company projected its ferronickel output this year to decline by around 10 percent to 8,040 tons from 8,933 tons last year.

The overhaul plan has already been communicated to Antam's customers. To ensure supply of ferronickel, the company has sealed a deal with Japan's ferronickel producer Pamco to supply 600 tons to its customers.

Antam said with the completion of the overhaul, which would enhance efficiency in the production process, the company's production would increase by 10 percent next year.

Antam shares ended unchanged at Rp 1,375 on the Jakarta Stock Exchange on Thursday. -- JP