Antam to focus on efficiency program to improve profit margin

Publicly listed mining company PT Aneka Tambang (Antam) will focus on efficiency program in improving the company?s profit margin considering that the strengthening of the rupiah against the U.S. dollar lately could result in the decline in the export earnings, Bisnis Indonesia reported on Tuesday.

Antam?s corporate secretary Dohar Siregar said in Jakarta on Tuesday that although the price of gold remained high at US$357,000 per troy ounce and nickel at US$8,000 per ton, and the total production remained stable at last year?s level, the strengthening of the rupiah and the increase in the fuel price could drag down the revenue.

In order to cope with the higher operation cost and the decline in the total revenue (in term of rupiah) Antam would take a cost-cutting measure, to improve earnings from hedging activities and to maintain the current production.

"With the increase in the fuel price, we will use cheaper fuel alternative, as well as reducing the use of the fuel," he said.

According to him, the prospect of the gold and nickel prices remained good, but he said that the increase in the revenue would depend on the new expansion. He added that the construction of the new nickel refining plant FeNi III would start giving contribution to the revenue in 2005. (*)