Rupiah's steady fall lifts Aneka Tambang

JAKARTA (JP): Publicly listed state mining company PT Aneka Tambang said its net profit increased 113 percent to Rp 69.52 billion (US$9.2 million) from Rp 32.62 billion last year.

Company president Dedy Aditya Sumanegara said Monday the windfall was caused by an increased sales volume and the dollar's appreciation against the rupiah.

He said the company recorded increases in sales volume for several products last year, including nickel ore (17 percent), gold (11 percent), bauxite (6 percent), and iron sand (20 percent).

The company exported 70 percent of its products and most of its products sold domestically were also denominated in the dollars, Dedy said.

"An increase of 10 percent in the dollar's value against the rupiah will give us a 15 percent increase in earnings," company finance director Ki Agus Umar Tochfa said.

Company operating costs in dollars decreased by 30 percent last year, he said.

The company paid Rp 30.93 billion in debt interest last year, 39 percent down on the previous year's interest payment, Dedy said.

The company mines nickel, gold, silver, bauxite and iron sand throughout the country.

Dedy said world metal prices had weakened throughout last year.

Ferronickel had dropped 10.12 percent to $3.02 per pound last year, while gold was down by 14.6 percent to $333.8 per ounce, he said.

Dedy projected company gold output to increase to 4,044 kilograms this year, compared with last year's output of 2,004 kilograms.

Silver output is expected to increase to 22,702 kilograms this year from 15,340 kg last year, while bauxite output is expected to reach 800,000 metric tons, compared with last year's output of 808,749 metric tons.

Iron sand output is projected at 575,000 metric tons this year, up from 487,378 metric tons last year.

Nickel output is predicted to decrease to 8,350 metric tons a year from 9,999 metric tons as the company plans to overhaul its power plant in Pomalaa, South Sulawesi. (jsk)