Government gets Rp 183b dividend from Antam

Leony Aurora, The Jakarta Post, Jakarta

The government is set to receive Rp 183 billion (US$19.4 million) from state gold and nickel miner PT Aneka Tambang (Antam) after the company's shareholders decided on Monday to pay out a 35 percent dividend on last year's profit.

The shareholders meeting decided to give final dividend of Rp 128.5 a share, in addition to another Rp 19.6 a share of interim dividends it paid in January.

"The meeting raised the proportion of the dividend from 30 percent to 35 percent," said Dedi Aditya Sumanagara. In total, the company will distribute Rp 282.5 billion worth of dividends to all its shareholders.

The government owns a 65 percent stake in the company, while the public controls the rest.

Stronger prices in the global market sent Antam's net profit last year soaring to Rp 826 billion, more than triple the net income it booked a year earlier.

Average prices of ferronickel rose 48 percent last year to $6.18 per pound spurred by strong global demand.

Dedi said nickel prices that were previously forecast to weaken had continued to show an increasing trend, currently trading at about $8 a pound.

"I think prices will stay above $6 (a pound) throughout the year," he said.

With high prices, the company was upbeat that it would be able to reach its revenue target, despite one of its smelters, FeNi II, having to be shut down for six more months due to furnace problems. The plant had earlier been closed for five months for maintenance.

Director of operation Alwin Syah Lubis said that the company's new smelter, FeNi III, was currently under construction and would be completed ahead of schedule.

"It would contribute to our ferronickel production," he said.

Dedi said the new smelter, which is estimated to cost Rp 881 billion, would start trial operations as early as November.

"It'll be producing in full swing early next year."

FeNi II, meanwhile, was scheduled to resume production in August, he said.

On the company's plan to acquire some 18.72 percent -- half owned by the government and half by PT Indocopper Investama -- of PT Freeport Indonesia, which operates a giant gold mine in Papua, Dedi said that the company needed to make further studies.

"We still need to see whether the government will approve the plan," said Dedi. "We also need to study whether (acquiring the stake) will add value to for shareholders, including minority ones."

Roes Aryawidjaja, deputy for energy, mining and strategic industries, at the office of State Minister for State Enterprises, said Antam's position in Freeport would enable the government to supervise the gold miner's operation.

"The office supports the plan," said Roes. "With shares of 18 percent, we can place a commissioner in Freeport," he said.

Antam's shares ended unchanged at Rp 2,350 on the Jakarta Stock Exchange on Monday.