Antam to up gold output by 5% to 10%
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)