Aneka Tambang Quarterly Report: Exploration and development update

Exploration

In 4Q00, Antam's exploration continued its focus on lateritic nickel in the Buli area of Halmahera Island, North Maluku province and Bahubulu Island in the province of Southeast Sulawesi.

However, during the quarter, Antam also carried out regional gold exploration on Sumatra and Java, and detailed surface mapping and rock sampling at the Latupa Prospect in South Sulawesi. Gold exploration on Mt. Liman located in East Java was postponed during 4Q00 following the analysis of the geological and geophysical data. Used to predict the continuation of the mineralization at certain depths, the analysis will help determine the drill program to be performed.

The exploration of bauxite on Tayan, West Kalimantan was halted in 4Q00 and will be recommenced in 1Q01. Please see below for more information in the Development section.

Total expenditure on exploration during 4Q00 was Rp11 billion (US$1.2million). The total exploration expenditure for 2000 amounted to Rp29 billion (US$3.1million). This figure is the expenditure cost for the exploration unit, Geomin, and is exclusive of overhead and exploration budgeted through Antam's working mines. Antam plans expenditure for exploration amounting to 5% of the previous year's sales revenue.

For 2000 Antam exploration expense amounted to approximately Rp. 50billion (US$ = 9,400).

Nickel

Southeast Sulawesi

In Southeast Sulawesi, during 4Q00, Antam continued its exploration of lateritic nickel with systematic drilling using 100m spacing on the Bahubulu prospect and regional drilling with spacing up to 500m on Kabaena and Wowoni prospects.

A total of 148 drill holes of 2684m in depth were conducted in 4Q00. The systematic drilling in Bahubulu prospect will continue in 1Q01. In 4Q00, an amount of Rp1.6 billion was spent exploring in this area, higher than the Rp1.32 billion expended in 3Q00.

Buli

The Buli tenement, which includes Antam's nickel mine at Gee Island, is located on North Maluku's Halmahera Island, covering an area of 39,040 Ha. The tenements may also be referred to as the Halmahera tenements.

During 4Q00, systematic drilling using spacing of 50m and 25m was carried out as infill drilling to increase the reserve/resource classification; specifically at the areas of Pakal, Tanjung Buli and Mabapura (Block A and Block P4/P5). Regional drilling on 500m spacing and geophysical surveys using the resistivity method were conducted at the Sangaji prospect which surrounds the areas mentioned above.

As at 31 December 2000, the total inferred nickel resources of saprolite discovered at the Sangaji area was 40.5million wmt @ Ni: 2.5% and Fe : 10.7% and for limonite was 50.4million wmt @ Ni : 1.3% , Fe : 33.4% and Co : 0.16%. The inferred resource estimation was calculated using the area of influence and each drilled hole was allocated an area of 250,000 m2.

The inferred resources at Sangaji add to the nickel potential of the Buli tenements. As at 31 December 2000, proved reserves at Halmahera (excluding the reserves of Gebe, Gee and Pomalaa) amounted, for saprolite, to 30.6million wmt @ Ni : 2.4%, Fe : 13.25% and for limonite was 36.3million wmt @ Ni : 1.5% , Fe : 34.06% and Co : 0.16%.

The expenditure for these activities in 4Q00 was Rp6.5 billion by comparison with that of 3Q00, which was Rp3.8 billion. In the next quarterly, the exploration will continue with detailed drilling on spacing of 25m to 50m so as to increase resource/reserve classification and regional drilling in Sangaji prospect on spacing of up to 500m.

Gold

Latupa Region

Antam's Latupa tenement is located at South Sulawesi and covers an area of 14,750 Ha. Earlier exploration has uncovered a zone of quartz vein mineralization at the Mangkaluku area, which was followed up with drilling activity. A total of 11 drill holes were excavated upto the end of 3Q00, but the resulting analyses were not promising for economic mining at Mangkaluku and further activity has been terminated.

Therefore, in 4Q00 the exploration at Latupa was shifted to the Babak prospect. The activities included detailed geological mapping and rock sampling to explore the areas indicating a porphyry type mineralization, including the Liba area. The indications of the mineralization were characterized by potasic and phyllic altered rocks observed on outcrops and floats.

The expenditure in 4Q00 was Rp900 million. A total of Rp2.4 billion was spent during 2000 on exploration in this area.

Pongkor

Antam continued the exploration at its Pongkor Gold Mine in West Java. The efforts focussed on a newly discovered and promising deposit called Gudang Handak. During 4Q00 drilling occurred at 5 locations with 2324m in length, bringing the total drilled length to 7771m at this prospect.

Drilled activities on this prospect will continue in 1Q01 with infill and extension drilling to prove the continuation of the deposit dimensions in terms of lateral and depth.

Exploration expenditure in 4Q00 was Rp1.4billion, compared to the previous quarter of Rp930million million.

Development

Fe Ni III

Antam announced on December 6 th , 2000 the appointment of international contracting firm Tessag INA GmbH of Germany as the nominated Engineering, Procurement and Construction (EPC)Contractor for Antam's ferronickel expansion project. The project, located in SE Sulawesi alongside the company's two other smelters at Pomalaa will double Antam's contained nickel production to 24,000tpa. Tessag was selected for their proven track record and expertise with projects of this scope and magnitude.

The next step is to achieve the project's financial closure, following the due diligence process, which is currently underway. A German Bank is expected to lead the Project Financing, with the necessary insurance coverage to be issued by the related export credit agency. The details of the proposed loan funding will be finalized during the first half of this year. The total cost of the project is expected to reach US$220million, including the associated financing costs (excluding the separate Power Plant

Project).

The proposed international debt funding is expected to total around 70% of the total costs, while the remainder of the funding is expected to be provided by Antam and a local consortium of Banks. Construction is expected to take 28 months and full commercial operation is planned for 2004.

ISO 14001

Antam is delighted to have received on November 13, 2000 notice of having met the requirements for receipt of the ISO 14001accreditaiton for its environmental management system of the Pomalaa mine facility on SE Sulawesi. Antam expects to take receipt of the certificate during a ceremony in May 2001

Tayan

During 4Q00 Antam's efforts regarding its US$150million Chemical Grade Alumina project focused on securing the necessary legal documents to proceed with the project. Several necessary feasibility studies have been completed and during the quarter preparations were made for the socialization program for the surrounding community.

An application for a Generation 8 Contract of Work (COW) was submitted on November 3 rd 2000 to the Department of Energy and Mineral Resources. On November 20 th , 2000 Antam received preliminary approval from the Director General of General Mining.

However, there are obstacles in the near future with regards to acquiring formal COW approval due to uncertainty surrounding the legislative process and the potential impact of the anticipated new mining law.

PT Nusa Halmahera Minerals

PT Nusa Halmahera Minerals (PTNHM) is a PMA company owned by Newcrest Singapore Holdings Pte Ltd (82.5%) and PT Aneka Tambang (17.5%). Newcrest Singapore Holdings Pte Ltd is a 100% owned subsidiary of Newcrest Mining Limited.

The Gosowong Gold Mine lies within a Generation 6 Contract of Work held by PTNHM.

Total gold production at Gosowong for the December quarter was 41,555oz.

Throughout much of the December quarter mining was conducted in a lower grade depleted zone within the Gosowong pit. As forecast, mining once again encountered higher-grade ore zones towards the end of December. This resulted in a corresponding increase in mill feed grade and gold production in the latter part of December.

Mill throughput for the quarter was 77,909 tonnes at a grade of 17.6 g/t Au and 17.0 g/t Ag. Tonnes treated were 6% higher than the previous quarter reflecting further improvements in plant performance and a response to lower mill feed grade. Gold recovery was maintained at 94.3% in line with forecast expectations.

During the quarter exploration activities were conducted in the vicinity of the mine. Investigation of the high grade Toguraci vein to the west of the Gosowong Mine continued with up to three man-portable drill rigs in operation. Results to date, including 1.4m @ 18 g/t Au, 2.5m @ 44g/t Au and 5m @ 13 g/t Au, indicate that the mineralized vein, while narrow, is persisting at depth and may comprise a number of plunging shoots.

The security situation in North Maluku, and in particular in the vicinity of the mine, remained relatively calm during the quarter.

Ramadhan, Christmas and Idul Fitri were celebrated during December in a spirit of goodwill and co-operation.

The company continued to provide humanitarian aid and other appropriate support to the region. A number of local community development initiatives have recommenced and, in a joint initiative with the Australian based group Global Medical Support (Inc.), the Company plans to distribute two containers of medical products to local communities during the March quarter.

Development - Joint Ventures

PT Dairi Prima

The Dairi Project comprises a Generation 7 Contract of Work in the name of PT Dairi Prima Mineral and a KP (Mining Permit) in the name of PT Kurniadi Florentia.

PT Dairi Prima is 20% held by Antam while International Annax Ventures, Inc., which is 71%, owned by Herald Resources Ltd, holds the remaining interest.

Diamond drilling continued up to late December at the Sopokomil Prospect, concentrating on the Anjing Hitam deposit at the SE extremity of the Julu sedex trend. The southernmost drilled holes SOP 42D & 43D had good intercepts which gives confidence that the deposit is still open to the SE and downdip.

Two holes were also drilled at the northern extremity of the trend, in the Bongkaras sector, and the northernmost - SOP 45D - obtained an Anjing Hitam style intercept of 5.5m @ 14.6% Zn & 8.5% Pb. Significant sedex type intercepts have now been obtained over 3.5 km of strike.

Extension and infill drilling is expected to resume in the March quarter.

PT Galuh Cempaka

PT Galuh Cempaka is the operating company of the project area which is a joint venture between Rio Tinto (who recently bought Ashton's share), the Malaysian Mining Corp. @ 80% and PT Antam Tbk. 20%. MMC has retained its 32% interest in Ashton-MMC despite having sold its ownership in Ashton.

PT Galuh Cempaka continues to operate on a Generation 7 Contract of Work No. B.53/Pres/1/1998

The project continues in the First and Second Extension of the Feasibility Study stage. The bulk sampling program is continuing to investigate the correlation between previous exploration results and possible commercial scale mining by bucket line dredge.

Due to the slow progress of the dredge it has not been possible to complete the Feasibility Study to date and the current extension expires on the 31/03/01. A further extension is being applied for.

To date the project has not achieved the budgeted diamond and gold production however some areas show similar results to that predicted. Currently the dredge is operating in the northeastern section of the mining area and it will be turned south in the near future. Some trace platinum is also being recovered. The recovered diamonds have been valued and found to be approximately as expected.

It is planned to substantially upgrade the dredge in 2001 to improve the running times and thus increase production.

Both operating and capital costs have been lower than budgeted. For 4Q00 total operation cost amounted to US$1,346,678.

PT Weda Bay Nickel

PT Weda Bay, of which Antam owns 10%, has a world class nickel deposit in Halmahera, Indonesia with Indicated resources of 133.4(Mdt) of 1.40% Ni and 0.10% Co. PT Weda Bay's Santa Monica(SM) deposit has indicated resources of 65.7 (Mdt) grading 1.40% Ni and 0.09% Co.

- Total drilling to date at SM area comprises 2,625 metres from 174 diamond drillholes.

- Potential resources for the entire Contract of Work area are in excess of 400 million tonnes.

- Bankable Feasibility Study (estimated to cost $18 million US) fully funded and scheduled for completion in December 2001.

The study contemplates production of up to 45,000 tonnes of contained nickel and 4,000 tonnes of contained cobalt per annum.

PT Sorikmas Mining

During the December quarter, activity included prospecting in catchment areas peripheral to known sediment-hosted gold mineralization at Sihayo, North Sumatera and field checking of areas considered to have poor potential for economic mineralization prior to relinquishment.10

Due to the current uncertainties in the investment environment, a substantial reduction in field activity was made, and the Department of Mines approved the Company's application for a one-year suspension of its Contract of Work, effective 1 November 2000.

The Department of Mines on 19 December 2000 approved the second area relinquishment of 84,900 hectares. Retained area is 66,200 hectares.

Expenditure by PT Sorikmas Mining for the quarter was approximately US$41,000.

PT Gag Nickel

PT Gag Island Nickel is jointly owned by Antam (25% interest) and BHP's subsidiary BHP Asia Pacific Nickel Pty Ltd. (75%). An acquisition of a 37.5% interest in PT Gag Nickel by Canada's Falconbridge will occur, with a subsequent and associated commencement of the release of US$75million to finish the feasibility study, following the resolution of certain issues.

During the December quarter PT Gag Nickel made headway towards Falconbridge joining the Gag Island joint venture. Progress on these issues include: ?BHP proposed clarifications to several commercial issues and Antam is studying the proposal; ?PT Gag Nickel held numerous meetings with the Indonesian Department of Forestry seeking a recognition of PT Gag Nickel's prior right to use surface mining techniques in a later decreed protective forest; and discussions with Falconbridge on the Scope of Work for final feasibility studies were begun.

Process investigations were not finalized

On Gag Island, preparation is underway for a resumption of drilling pending resolution of the above issues. PT Gag Nickel is eager to complete the feasibility study on this 240M-dmt nickel deposit.

Further information: Dohar Siregar (Corporate Secretary), Gedung Aneka Tambang Jl. Letjen T.B. Simatupang No. 1 Lingkar Selatan/Tanjung Barat Jakarta 12530, Indonesia, Tel: (6221) 780-5119 Fax: (6221) 781-2822, Email: corsec@antam.com

Visit our webpage at www.antam.com.

Editor's note: Some figures and tables had been deleted. Please visit the company's website for complete report. (*)