Antam?s smelter turned back on after reaching agreement with union

State nickel and gold miner PT Antam Tbk said Monday it had reached agreement with the labor union at SBU Nickel, the company?s Southeast Sulawesi nickel operation at Pomalaa to increase worker pay and resume full operations.

Antam said in a statement that after 5 days idle, the smelters were turned on Sunday evening and would be fully operational on Wednesday of this week.

SBU Nickel?s two smelter plants were shut down on late Tuesday April 23, 2002 after 100 of 1,400 employees staged a peaceful blockade to air grievances incited by a misunderstanding concerning take home pay versus total income, which led to demands for a pay increase.

The company said the precise amount of the employee pay increase is being finalized, but will not exceed 50 percent of the most recent individual take home pay and will become effective in May 2002.

SBU Nickel produces an average 28 tons of ferronickel per day, which is shipped to customers in Europe and Asia. No customer supply agreements were affected by the temporary stoppage, said Antam.

The total lost revenue is estimated at Rp 10 billion. (US$ = 9,300). (alex)