Government gets Rp 183b dividend from Antam

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.