Antam to repair FeNi II smelter

State-owned diversified mining company PT Aneka Tambang (Antam) said Friday it planned to conduct "spot lining repair" works on the second ferronickel smelter, FeNi II, in early 2004.

The repair works come following fractures on the fifth engine frame of Power Plant II at its Pomalaa production complex in South Sulawesi.

?The fractures caused higher temperatures of the smelter and lower power generation,? Antam said in a statement, adding that the problem resulted in a lower production of its ferronickel in the fourth quarter.

In the fourth quarter of 2003, Antam's contained nickel in ferronickel production at Pomalaa decreased by 28 percent to 1,884 tons compared to previous quarter, with Pacific Metals Co. (Pamco) of Japan producing another 99 tons for the company under a "toll smelting" deal.

?Toll smelting was conducted in anticipation of lower production, in order to guarantee on-time product deliveries,? Antam said.

Furthermore, Antam said it also scheduled to carry out a major overhaul and modernization process of the FeNi II in the second semester of 2004.

Antam operates two smelters at Pomalaa. In 2003, the smelters produced 8,933 tons of contained nickel in ferronickel, while Pamco churned out 597 tons under the toll smelting scheme.

Separately, Antam said it also had started the construction of its third ferronickel smelter, the FeNi III, which is expected to start commercial operation in the first quarter of 2006. (robert)