Antam to up gold output by 5% to 10%

JAKARTA (JP): Publicly listed nickel and gold mining company PT Aneka Tambang (Antam) will increase its gold production by 5 percent to 10 percent this year from about four tons last year, according to company operations director Harsojo Dihardjo.

"Our (production) target for gold is a 5 to 10 percent increase," he said on the sidelines of a seminar on corporate governance at state-owned enterprises.

He said that Antam's nickel production this year was projected to increase to around 10,200 tons from 10,000 tons last year.

Antam exports most of its nickel. Nickel contributes about 60 percent to the state-owned company's revenue, while gold contributes more than 25 percent.

Harsojo said that Antam was also planning to acquire domestic or overseas mining assets as part of its expansion program, but declined to disclose any specific target or schedule.

"Acquisition is part of our expansion program. Our focus is on gold and nickel, this is our core business ... but we'll have to move carefully," he said.

He added, however, that there was also a possibility that the company would expand its mining operation into other commodities, such as bauxite.

Asked about progress in its plan to build a nickel smelter in Pomalaa, South Sulawesi, Harsojo said that the company was still discussing it with German-based Tessag AG, which would construct the smelter.

"We're still in discussions with Tessag," he said, saying financing, the environment and due diligence by banks were issues being discussed.

Antam said late last year that it planned to build a US$180 million smelter this year to boost its annual nickel production to 24,000 tons.

The company said it expected construction to begin in the first half of 2001 and be completed by the second quarter of 2003.

The company initially planned to start the project in 1998, but was forced to delay it due to the economic crisis.

Elsewhere, Harsojo said that the current political condition in the country had create anxiety among investors, prompting them to adopt a "wait-and-see attitude."(rei)