Release: Antam: Nickel reserves & resources estimation increases 61%

Jakarta, June 5, 2001 - PT Antam Tbk announces the results of its annual reserves and resources estimations, which are lodged as the Competent Persons’ Report as part of Antam’s listing rules on the Australian Stock Exchange. The results included a 61% increase of Antam’s fully owned saprolite nickel ore reserves and resources to 180 million wet metric tonnes. The rest of the results are as at tables below.

 

Mineral Resources and Ore Reserves ('000 wmt)*
Commodity	Ore Quantity		Change		Production
	2005	2006	(%)		2006
Saprolite Nickel	112,050	179,850	61		3,494
Limonite Nickel	175,450	185,150	6		860
Gold	4,550	3,863	(15)		378
Bauxite	85,400	84,400	(1)		1,502
Proved and Probable Reserves ('000 wmt)*
Commodity	Ore Quantity		Change (%)	Estimate Rate of Annual Production ('000 wmt)**	Estimated Remaining Years Without Further Exploration of Increased Production Development **
	2005	2006
Saprolite Nickel	30,100	62,900	112	3,500	18
Limonite Nickel	18,450	51,450	179	1,500	34
Gold	3,220	2,882	(10)	400	7
Bauxite	33,900	84,400	149	1,500	56
* Based on the Competent Person's report. Figures as per December 31, 2006 (Inferred resources were included in gold estimation)
** For illustrated purposes only

President Director, Dedi Aditya Sumanagara said, “exploration ss key to the future of any mining company and we are pleased with the results of the JORC-compliant reserves and resources estimations. Although we have large reserves, we always invests significant amounts in exploration, at around 3% of revenue”

 

The Geomin unit which discovered the Pongkor gold mine, conducts Antam’s exploration activities including geological exploration, geophysical investigation, surveying, drilling, lab analysis, data processing and arranges required licenses from general investigation to the exploitation phase.

 

Antam’s reserves estimations are fully comparable to other major mining companies as they are prepared according to the JORC code issued by the Australasian Institute of Mining and Metallurgy. Every year as part of Antam’s listing on the Australian Stock Exchange, Antam must submit its estimation in the form of the Competent Person’s report.

 

In 2006, Antam focused on nickel, gold and bauxite exploration and reserves estimation in Indonesia. Indonesia is considered one of the best countries in terms of mineral potential, as evidenced by the Annual Survey of Mining Companies 2006/2007” by The Fraser Institute. Antam possesses vast licensed areas to conduct exploration in Indonesia and as yet does not focus outside of the country.

 

In 2006, Antam’s total exploration expenditure, excluding joint ventures, increased 73% to Rp95 billion. Antam spent Rp73 billion on nickel exploration, Rp18 billion on gold, and Rp4 billion on bauxite. The biggest expenditures were for field activities such as drilling and mine design. In view of the strategic importance of reserves, in line with higher profits, Antam increased its exploration activities. Nickel mine plans were designed for Pakal Island, Obi Island and Tapunopaka, which will soon come into operation. In 2007, Antam expects to increase total exploration cost up to Rp154 billion or almost 3% of 2006’s export revenue. (end of release)