Antam expects 2004 nickel output to fall

JSX-listed state miner PT. Aneka Tambang Tbk. (Antam) expects its 2004 nickel output to decline by 10 percent due to planned repair on its ferronickel melter in SouthEast Sulawesi, the company president said.

Antam president Deedy Aditya Sumanegara told reporters Tuesday that the smelter, which has production capacity of 6,500 tons per year will undergo repir in June or July next year for around three months.

Antam expects to produce around 10,000 tons this year. The company currently operates two smelters with combined capacity of 11,000 tons per annum. Antam is expected to increase production capacity to 26,000 tons PA with the completion of its third smelter FeNi III scheduled for 2006.

Deddy also said that Antam has now undertake bankable feasibility study for its Tayan bauxite project in West Kalimantan and is in active negotiation with Chinese investors and Japan?s trading powerhouses Mitsubishi and Sumitomo.

Deddy said Antam will need around US$180 million to develop the alumina project, and would looking for strategic investors with who could shoulder the financial burden, as Antam is already debt-laden in financing the FeNiIII construction.

The US$177 million project is planned to be able to produce 300,000 tons of chemical grade alumina per annum from the huge bauxite deposit in Tayan.

Antam had previously held similar talks with several potential JV partners to develop the Tayan Alumina project, but failed because investors demanded that the project?s Mining Contract (KP) status be lifted to Contract of Work status, which must be approved by the parliament. Thus far, the government has not issued regulation on how to lift the contract area?s status. (godang)