ANTAM to up gold sales, ferronickel output to help deal with export ban

IDX-listed mining company PT ANTAM (Persero) Tbk said it has prepared strategies and initiatives to anticipate the impact of the government?s mineral ore exports ban, which was enforced on January 12.

?We have formulated a strategic plan to anticipate lower revenue and returns to our stakeholders. We believe the implementation of the company?s strategy and initiatives will continue to create a sound performance,? said ANTAM President Director Tato Miraza.

As part of ANTAM?s strategy to anticipate the ore export ban, ANTAM targets a 66 percent higher gold sales to 13.6 tons in 2014, compared to 8.2 tons of gold sales target in 2013, the company said.

ANTAM also targets ferronickel production of 20,000 tons of nickel contained in ferronickel (TNi) in 2014, an 11 percent increase over 2013 production target of 18,000 TNi. ANTAM also expects commercial operation of the Tayan Chemical Grade Alumina plan to commence at the end of the first semester of 2014.

As part of the company?s efforts to increase gold sales and expand retail gold market, ANTAM will open 5-10 gold retail outlets in 2014, following the opening of 5 new outlets in Jakarta, Bandung, Surabaya, Makassar and Palembang in 2013.

To support marketing of ferronickel and other commodities, ANTAM will open a representative office in Shanghai which will serve as marketing representative office for the China region in mid-January 2014. ANTAM also plans to increase coal trading activities, augment bold efficiency measures and accelerate the completion of the Pomalaa Ferronickel Plants Expansion Project.

As part of the efficiency initiative and to maintain a solid and healthy cash flow during bearish commodity price condition, ANTAM?s capital expenditure is targeted at Rp2.878 trillion in 2014.

Elsewhere, Tato said that ANTAM initially expected the government to provide a reprieve for the company, allowing it to continue export part of its ores output, as it has already built smelter and is in the process of completing new ones.

?? we previously had hoped that the mineral ore export would have been extended at least until 2017 for companies which already own processing and refining facilities, and particularly for those which are in the midst of building downstream facilities, including ANTAM. The extension of mineral ore export for companies which are committed in building processing and refining facilities in Indonesia will provide significant cash flow to complete the construction of the downstream facilities, notably during current bearish commodity price environment,? Tato said.

Editing by Reiner Simanjuntak