Release: Antam's 2004 ore reserves and mineral resources estimation
Tuesday, April 19 2005 - 03:02 AM WIB
In 2004, Antam?s exploration unit, Geomin Unit, conducted exploration activities in Indonesia for nickel laterite, gold and bauxite in Indonesia with the intention of finding new mineral deposits and increasing the classification of existing estimations of mineral reserves and resources. Exploration costs, which do not include joint ventures, during 2004 reached Rp62.5 billion, an increase of 22.5% from the same period in 2003. Of this amount, Rp48.5 billion was spent on nickel, Rp6.8 billion was spent on gold, Rp2.5 billion was spent on bauxite and Rp4.7 billion was spent on other minerals and costs related to the opening of Mornopo mine. All of Antam?s estimations are made in accordance with the JORC Code of the Australasian Institute of Mining and Metallurgy, and are submitted annually to the ASX as the Competent Person?s Report. The report does not include reserve and resources estimations of joint ventures and early-stage exploration projects.
Mineral Resources and Ore Reserves Table* | |||||
Commodity |
Ore Quantity
(?000 wmt)
2003
|
Ore Quantity
(?000 wmt)
2004
|
Change From
Last Year |
2004 Production
(?000 wmt) |
Replacement vs Extraction (Approximate) |
| Saprolite Nickel | 90,210 | 113,190 | 25% | 3,152 | 7 times |
| Limonite Nickel | 184,560 | 198,860 | 8% | 943 | 15times |
| Gold | 6,244 | 5,513 | -12% | 386 | 0 times |
| Bauxite | 113,070 | 112,250 | -0.7% | 1,330 | 0 times |
| Iron Sands | 3,250 | 2,650 | -18.5% | 90 | 0 times |
Based on the Competent Person?s Report. Figures as per December 31, 2004 (does not include inferred resources)
In this table we only focus on Antam?s ore reserves, which have been taken from the table above. Ore reserves are measurements of economically mineable ore, in order to show production years remaining if Antam was to stop exploration work. It is important to realize that Antam?s ore reserves will increase as its vast resources are estimated in consideration of the economics and become reserves:
PROVED AND PROBABLE RESERVES TABLE* | |||||
Commodity |
ORE RESERVES QUANTITY (?000 wmt)
2003
|
ORE RESERVES QUANTITY (?000 wmt) 2004 |
Change From Last Year |
Estimated Rate of Annual Production (?000 wmt) |
Estimated Remaining Years With No Further Exploration** |
| Saprolite Nickel | 34,180 | 33,370 | -2% | 3,500 | 10 |
| Limonite Nickel | 21,680 | 12,400 | -43% | 1,500 | 8 |
| Gold | 5,787 | 4,468 | -23% | 400 | 11 |
| Bauxite | 61,530 | 60,710 | -1% | 1,000 | 61 |
| Iron Sands | 3,250 | 2,650 | -18.5% | 500 | 5 |
Based on the Competent Person?s Report. Figures as per December 31, 2004 (does not include inferred resources)
**This is estimation and is not meant to suggest with certainty the mine life of Antam?s operations, which may have a longer or shorter duration.
Nickel
In 2004, nickel exploration activities were conducted in eastern Indonesia at three concessions: Buli, East Halmahera, North Maluku, Southeast Sulawesi and Simingit in Gebe Island, North Maluku. Exploration activities included geological and geophysical measuring, drilling, analysis and evaluation activities to improve the classification of the previously identified nickel ore resources. Antam also conducted technical geological research and bathymetry measurements in Buli to support the opening of a mine at Mornopo in 2005. Exploration activities at the Sangaji prospect in Buli were conducted as part of the development of the FeNi IV and High Pressure Acid Leach projects. Antam?s 2005 nickel exploration activities will carry on with the same objectives as in 2004.
Antam has an agreement with where PT Inco will conduct drilling activities at their concession called East Pomalaa, which lies directly adjacent to Antam?s operation. The agreement will allow Antam to extract nickel ore from East Pomalaa as raw material for FeNi III, once commercial operations begin in 2006.
In 2004, Indonesia passed Law No. 19, which made a law out of a previously passed Regulation in Lieu of a Law (Perpu). Providing certain conditions are met, Law 19 allows mining companies in possession of a mining license to operate in an area reclassified as a ?protection forest? following the issuance of Law No. 41/1999, which banned open pit mining activities in protection forests, to recommence their activities. Antam has the opportunity to restart activities at its nickel deposits in Buli at the Pakal Island and Sangaji prospects and at Bahubulu.
As at December 31, 2004, due to the augmentation of the estimation of mineral resources from inferred to indicated and measured, Antam?s total saprolite (high grade) nickel ore reserves and resources increased 25% to 113 million wmt, and Antam?s total limonite (low grade) nickel ore reserves increased 8% to 199 million wmt. Antam?s ore resesrves estimation, which exclude mineral resources, decreased for saprolite by 2% to 33 million wmt and for limonite by 43% to 12 million wmt. The limonite decrease occurred as deposits previously estimated as ore reserves were reclassified as mineral resources. Limonite, when mined as part of the extraction of saprolite is considered economical, but without the latest technology, limonite mined on its own is less economical.
Buli, East Halmahera ? North Maluku
Activities were conducted at various prospects within Antam?s 39,040 hecatre Buli concession, such as Pakal Island, Mornopo, as well as the operating mine of Gee Island and Tanjung Buli. As a result, Antam?s saprolite reserves and resources at Buli increased 30% to 90.5 million wmt (wet metric tons), while limonite reserves and resources increased 24% to 98.5 million wmt.
In 2005, Antam will again focus on improving the classification of nickel ore resources towards opening the Mornopo mine and in Sangaji, to anticipate the development of the FeNi IV and HPAL projects.
Southeast Sulawesi
Exploration activities in Southeast Sulawesi were conducted at Bahubulu Island, Tapunopaka and Mandiodo in order to support the supply of nickel ore feed for Antam?s ferronickel plants in Pomalaa. As a result of exploration work, Antam?s saprolite reserves and resources in Southeast Sulawesi increased 13% to 22.7 million wmt, while limonite reserves and resources decreased 4% to 100.4 million wmt.
Gebe Island
In 2004, Antam explored the Simingit prospect near to its now depleted Gebe mine. Drilling activities found measured resources of nickel ores measuring 3.95 million wmt. However, as exploration at Simingit was impeded by areas located within a protection forest, exploration activities ceased. As such Gebe and Simingit were not included in the 2004 reserves estimation.
Gold
Exploration activities for gold were intended to find new prospects considering the depleting reserves of Cikotok and Pongkor gold mines. Exploration was conducted in the vicinity of the existing mines as well as in other regions, targeting high-content ores.
Within Pongkor, intensive exploration activities were conducted in Cimahpar, Dahu Mountain, South Ciurug and South Ciguha. The results of the drilling test conducted in Cimahpar revealed a small amount of inferred resources. Due to extraction, and without significant new discovery, Antam?s total gold reserves and resources, decreased 12% to 5.9 million wmt of gold ore with 1.7 million ounces of gold metal
In 2004, Antam identified prospects in Bonjol, West Sumatra; Seblat, Bengkulu; Sipirok, North Sumatra; Air Nokan, Bengkulu; and Cimahpar, Pongkor, which will be the focus of gold exploration in 2005.
Bauxite
Exploration activities for bauxite were conducted to improve the classification of the reserves estimation at Tayan, West Kalimantan, toward the development of the chemical grade alumina project. At the Wacopek area of the nearly depleted Kijang bauxite mine, Antam conducted re-exploration by implementing a beneficiation program, and searched for new prospects around Bintan, Riau, in order to meet the demands of customers.
As at December 31, 2004, Antam?s total bauxite reserves and resources decreased 0.7% to 112 million wmt.
In Wacopek, Kijang, the beneficiation program was conducted on prospect areas that previously did not meet required specifications for export, which offset the reduction in reserves from the 1.3 million tonnes extracted in 2004 for export. Antam?s reserves of washed bauxite at Kijang decreased 30% from 2.8 million wmt to 1.95 million wmt.
Although Antam conducted extensive exploration activities at Tayan, at the time of publishing this annual report, Geomin was conducting a reanalysis of the drill samples and a complete estimation was unavailable. The 2004 Competent Person?s Report contained the same estimation as the 2003 report. The reserves and resources of washed bauxite at Tayan were estimated at 110.3 million wmt.
Antam?s 2005 bauxite exploration activities will carry on with the same objectives as in 2004. (end of release)