Antam?s FeNi III output cut on metal leak

JSX-listed state miner PT.Aneka Tambang Tbk. (Antam) reported on Monday that it had lowered the power load of the FeNi III ferronickel smelter in Southeast Sulawesi on small metal leak from the furnace wall.

The leak, according to the company, occurred on Saturday night (June 16, 2007).

The leak forced Antam to cut power load from 34MW to 2 MW.

The company said that based on preliminary investigation and external consultant assessment, the smelter will reach its normal operating load in a maximum of three weeks. The company is now investigating the cause of the leak, but it said the damage to the smelter was minimum.

The company did not give detail about production cut caused by the power load decrease, but said it would try to keep its 2007 ferronickel production of 20,000 tonnes unaffected. ?Following this incident, Antam is still targeting production of 20,000 tonnes of nickel contained in ferronickel by using higher grade of ore feed for the smelter when it resumes operations as well as by using toll smelting. Meanwhile, to offset lost revenue, Antam will attempt to increase its sale of ore,? the company said.

Until the end of May, Antam has produced 7,510 tonnes of nickel contained in ferronickel.

The US$320 million FeNi III began commercial operations inJanuary 29, 2007. (alex)