Low price leads PT Antam to cut nickel output target

By Bambang Atmaja

State-Owned Enterprises Minister Dahlan Iskan said on Monday that lower global prices of commodity has pushed state-controlled mining firm PT Antam, the country's second biggest nickel producer, to cut production target this year to 13 million tons from the initial target of 18.8 million tons.

Dahlan said that the move to cut output target was aimed at preventing huge financial loss amid the weakening prices.

"Now the prices of the commodity are like that (decreasing). If it (the company) produces more, it is going to suffer huge financial losses," he said.

But, the minister said that the firm expected the global commodity prices to eventually increase again, allowing it to raise production target again.

Editing by Reiner Simanjuntak