Antam hit by losses following export ban

IDX-listed mining firm PT Anek Tambang Tbk (Antam) suffered a net loss of Rp 272.61 billion in the first quarter of this year, compared to a net profit of Rp 407.66 billion in the same period of last year, due to the government?s mineral export ban policy which was introduced on January 12, Kontan reported on Monday.

The paper said that due to the export ban, the company has not been able to export nickel and bauxite ores, causing sales revenue during the quarter to drop by 31.03 percent to Rp 2.3 billion from the same period of last year.

Antam President Director Tato Miraza expected the company?s performance will be under pressure throughout the year as it would not be able to export nickel ores, which last year accounted for 35 percent of total revenue.

He said that to help deal with the problem, Antam will take efficiency measures by suspending non-priority projects, while accelerating priority projects such as the construction of the Tayan Chemical Grade Alumina smelter project. ?Our target is to be able to produce between 135,000-160,000 tons this year,? he said.

Another strategy is to boost the contribution of ferronickel and gold, whose sales are targeted to increase by 35 and 44 percent, respectively this year. (*)