Antam mulls $31 million rights issue

The management of state-owned gold and nickel mining company PT Aneka Tambang (Antam) has proposed to the government to issue new shares worth about US$31 million through a rights issue mechanism, Bisnis Indonesia newspaper reported in its Tuesday edition.

?We received the suggestion regarding the issuance of $31 million new shares from the management of Antam and it was in line with the state enterprise?s privatization. But we asked the company?s directors to submit it (the proposal) in writing,? Assistant Deputy at the Office of the State Minister for State Enterprises Aloysius K. Ro said on Monday.

The government, according to Aloysius, will consider Antam management?s proposal to issue new shares because the company needs money to finance the exploration of Alumina Tayan project.

Antam will decide on the source for funding of $200 million Alumina Tayan bauxite mine in West Kalimantan in March 2004.

Aloysius said the government will maintain its majority stake in Antam.

The government currently holds a 65 percent stake in the publicly-listed Antam, with the remainders in the hands of private investors.(*)