Antam's nickel orders increase despite poor outlook

Publicly listed miner PT Aneka Tambang Tbk (Antam) announced on Wednesday it has signed an agreement today for a maximum amount of 2,090,000 wmt of high-grade (saprolitic) nickel ore with Japanese companies.

Antam?s statement said the order was a renewal of a yearly contract beginning every June with a consortium of three Japanese companies called Gokokai. Last year Gokokai, comprising Nippon Yakkin, Sumitomo and Pacific Metals Co (Pamco), signed a contract for a maximum amount of 1,320,000 wmt of high grade and this year opted for a 58% increase.

"We are pleased the increased order has been signed despite the poor outlook for nickel ore in the medium term and as stainless steel mills cut their production due to reduced demand. Gokokai has always been pleased with our service and quality," the statement added.

The increased deliveries began immediately in June of this year, with Pomalaa exporting 250% more high grade nickel ore in 3Q01 than last year and with shipping beginning from Antam's new mine at Tanjung Buli and from its existing mine Gee. Pamco tripled its order, Nippon Yakkin increased its order by 35%, while Sumitomo have requested the same amount. Nippon Yakkin will generally be shipped ore from Pomalaa, Sumitomo from Gebe/Gee and Pamco from the new Tanjung Buli mine.

All of Antam's high-grade nickel ore is exported to Japan and so far in 2001 has generated Rp 314 billion (about US$30 million) in revenues or roughly 30% of Antam's export revenue. (robert)