Antam signs smelting agreement with Pamco

State miner PT Aneka Tambang Tbk (Antam) announced on Monday the signing of a toll agreement with Pacific metals Co. Ltd. of Japan (Pamco). The agreement came as Antam ensured its ferronickel orders w ere filled following accident in its ferronickel smelter FeNi I.

Reduced production from FeNi I required portion of its ferronickel refined by third party to meet salews agreement with buyers.

According to Antam?s statement, the agreement will enable Antam to reach its 2001 sales target of 10,300 tons of contained nickel in ferronickel.

Under the agreement, Pamco will receive nickel ore from Antam and to produce ferronickel for delivery to Antam?s customers such as Pohang Iron and Steel from Korea, Yieh United of Taiwan, and Nissin Steel and Nikinko of Japan.

Antam would pay Pamco for smelting and delivery charges.

Antam said total lost production during repairs and commissioning of FeNi I was predicted to reach between 1,000 to 1,150 tons and expected to return to normal capacity in mid-October. (alex)