Antam's ferronickel production to fall due to smelter shutdown
Antam's ferronickel production to fall due to smelter shutdown
The Jakarta Post, Jakarta
State-owned mining company PT Aneka Tambang (Antam) expects its
ferronickel production to fall 27 percent short of its initial
target, following the unscheduled refurbishing of one of its two
smelters, which is estimated to last for up to six months.
In a recent statement, the publicly listed miner said, due to
the refurbishment, its full-year ferronickel production target
from FeNi II smelter, located in Pomalaa, Southeast Sulawesi, had
to be lowered to 6,800 tons from 10,000 tons.
To minimize losses, Antam will increase its volume of toll
smelting with Pamco from 150 tons to 600 tons, meaning that the
combined output of ferronickel from the two plants will reach
7,400 tons.
The company shut down the FeNi II smelter in late March after
discovering damage to the refractory bricks at the bottom of the
furnace due to excessive heat.
The current refurbishment is estimated to cost between US$3
million and $5 million, Antam said. The smelter is expected to
begin commercial operations at the end of August.
In fact, a scheduled five-month-long overhaul had started at
the FeNi II smelter last September. The overhaul included the
full relining of the inside walls with new refractory bricks and
a cooling system upgrade.
A preliminary analysis has suggested that the current damage
was caused by poor implementation of a procedure in building up
power in the facility.
"The initial analysis suggests the damage was not caused by
faulty installation, equipment or technology," Antam said in the
statement.
Antam is 65 percent owned by the government, with the
remainder owned by the public.
It is now constructing its third smelter, which is expected to
start production in 2006.
The company's net profit last year soared to Rp 826 billion
(US$86.9 million), more than triple the Rp 227 billion profit
recorded the previous year, due to strong prices on the global
market.