Antam to focus on gold and nickel, intensify explorations

Publicly listed state owned mining company PT Aneka Tambang Tbk. (Antam) said it would focus its business on nickel and gold and boost exploration activities.

"Antam will focus on gold and nickel, but we will not disregard other minerals," said Harsojo Dihardjo, the company's operation director, on Thursday.

"We believe that we could build a sustainable business in nickel and gold, as we have sufficient deposit and we are continuously pushing for new mineral discoveries," he said.

Antam's main nickel production center is located in Pomalaa, South East Sulawesi and gold production center in Pongkor, Banten (formerly West Java).

Harsojo said Antam's nickel production in Pomalaa stood at 10,100 tons in 2000 and the company expected the production to reach 10,300 tons this year. Production is expected to increase to 24,000 tons in 2004 when its FeNi III expansion project is completed.

He said Antam would increase gold production capacity in Pongkor to five tons in 2003 from four tons this year by boosting ore production.

Antam would set aside five percent of its revenue to finance exploration activities this year, but he refused to give figures. In 2000, exploration funds reached Rp.50 billion (US$ = 9,400).

He said Antam had increased its nickel reserves through its own operation and joint venture operations, while some of its gold exploration activities in Java had shown promising results.

For instance, Antam had found 400 million tons of proven nickel reserves in Halmahera island, Maluku alone, which the company had yet to be exploited, Harsojo said.

In its bid to become a world-class mining operator in 2010, Antam would continue to forge strategic alliances with reputed partners, Harsojo said.

Antam currently has 14 joint ventures, ten of which are in gold, two in nickel, one in diamond and another one in base metal. Most of the joint ventures received Seventh Generation Contract of Work (COW).

Harsojo admitted Antam and some joint venture partners were seeking to suspend exploration activities due to uncertainties prior to the implementation fo the decentralization program and the issuance of the forestry law which forbids open pit mining in protected forest areas.

However, he said, some of the joint venture projects had shown promising results such as the nickel project in Gag Island, Irian jaya with BHP; the nickel project in Weda Bay, Maluku with Strand Mineral; the diamond project in South Kalimantan with Ashton Mining; the bauxite project in Tayan, West Kalimantan; and the zinc-lead project in North Sumatra with Herald Resources.

Antam currently holds 81 mining contracts across the country including 14 COWs with international companies, said Harsojo. (alex)