Antam's FeNi I smelter resumes operation

State owned mining company PT Antam Tbk announced Friday completion of repairs to the coolant system and roof of its FeNi I ferronickel smelter, which began July 17 2001 after a minor accidental explosion in the furnace.

According to the company?s statement, the smelter was switched on one week prior to the target, during an official ceremony held on Thursday at Antam's nickel business unit at Pomalaa, Southeast Sulawesi.

Antam said the commissioning period for the smelter is expected to take 40 days to heat the furnace as the load gradually increases to normal operating levels.

Total production from FeNi I during the commissioning period is likely to reach approximately 90 tons of export quality contained nickel.

Full load, and a return to normal operations, is expected for October 10 2001, less than three months after the accident occurred.

Antam said lost production during repairs amounted to approximately 616 tons contained nickel. Net lost production during commissioning would likely amount to 470 tons, with total lost production of 1086 tons contained nickel.

This, said Antam, is less than the anticipated 1260 tons total lost production using the estimated best case scenario of 3 months down time.

In order to uphold existing ferronickel supply contracts during the repair and commissioning period, Antam is using what is known as a toll system. Antam sends its nickel ore for processing to Pacific Metals Co (Pamco) in Japan for subsequent delivery to certain Antam ferronickel customers. (alex)