Release: Antam begins closure of the Gebe nickel mine

Jakarta, December 2, 2004 ? PT Antam Tbk announces that on November 29, 2004 it has closed nickel mining activity at Oeboelie, Gebe island, North Maluku as the reserves become fully depleted. Although Antam has ceased mining activity, other activity will remain until Gebe?s nickel ore stock is completely exhausted.

Antam?s Operations Director, Alwinsyah Loebis said: ?Despite the closing of nickel mining activities at Gebe, we will continue to consistently provide our customers with timely delivery from our existing three nickel mines of Gee and Buli at North Maluku, and Pomalaa at Southeast Sulawesi. In mid 2005, we will also open an additional nickel mine of Mornopo at North Maluku to ensure Antam?s nickel production capability in the coming years.?

The initial production for Mornopo nickel mine will reach 500,000 wmt of saprolite nickel ore and will be increased in line with Antam?s long term planning as well as customer?s demand. Antam is also in preparation to develop two new nickel mines of Pakal Island at North Maluku and Bahubulu at Southeast Sulawesi.

Antam has allocated Rp59 billion of mine closure costs for Gebe, which includes mine closure and reclamation costs. As part of the Gebe mine closure program, Antam will continue land rehabilitation and environmental monitoring for its former mine areas.

As well, Antam will continue the planned cooperation with other institutions following the signing of Memorandum of Understanding with the Department of Marine Affairs and Fisheries in 2002 to develop the local sea and fishery industry using the company?s assets.

The mine of Gebe commenced operation in 1979 with annual production of 700,000 wmt ? 1,000,000 wmt of saprolite nickel ore. Limonite production reaches between 500,000 ? 1,000,000 wmt per year. Saprolite nickel ore from Gebe is exported to Japan and also supplies ore feedstock for the Pomalaa ferronickel plants, while the limonite ore is exported to Australia. (end of release)