Falconbridge of Canada plans to enter Aneka Tambang

Canadian mining company Falconbridge has expressed its interest to buy part of publicly listed general mining company PT Aneka Tambang?s shares after the company cancelled its plan to invest in PT Gag Nikel Indonesia (GNI), Bisnis Indonesia reported on Wednesday.

"Falconbridge is currently exploring the possibility of buying Antam?s shares after withdrawing from investing in GNI," Chief Financial Officer of Antam, Ki Agus Umar Tochfa was quoted as saying by the daily.

Falconbridge initially planned to buy 37.4 percent of BHP?s stake. The company planned to inject investment funds of about US$75 million to finance the feasibility study in the Gag island. GNI is currently 25 percent owned by Antam and 75 percent by BHP.

However, the Canadian company cancelled its plan following the introduction of the new forestry law which bans open mining operations in protected forests. GNI?s mining concession on the Gag island is located in the protected forests.

"The Canadian company will soon assess the possible partnership with Antam," he said.

PT Aneka Tambang which produces gold and nickel in several mining areas in the country booked a net profit of Rp 41.68 billion during the first quarter of this year, a drop of 60.2 percent from Rp 104.97 billion in the same period of 2001.

Antam?s sales rose to Rp 342.9 billion from Rp 338.9 billion during the period, but the operating profit dropped to Rp 56.9 billion from Rp 132.8 billion due to an increase in the cost of sales to Rp 257.4 billion from Rp 180.48 billion. (*)