Release: Antam switches on FeNi III smelting plant

Jakarta, February 27th, 2006 ? PT Antam Tbk is pleased to announce it has switched on the FeNi III ferronickel smelter following the completion of a 28-month construction period that began in October 2003 . Switch on of the smelter took place on February 12th, 2006 during a ceremony held at Antam's nickel business unit at Pomalaa, Southeast Sulawesi. After the switch on, the smelter enters the commissioning stage and Antam?s contractors will gradually increase the power load over 60 days to a level of 42 megawatts (MW). At this power load, Antam?s FeNi III smelter will have begun commercial operations. Antam expects to produce 20,000 tonnes of nickel contained in ferronickel in 2006, a significant increase compared with 2005 ferronickel production of 7,338 tonnes.

Antam?s President Director, D. Aditya Sumanagara said: ?The operation of FeNi III smelter is another milestone in our growth strategy to create shareholder value by moving more of our revenue generation downstream into processing activities. We expect revenues to increase significantly in 2006 and to improve efficiency through economies of scale.?

The US$320 million FeNi III project includes a new smelter and power plant and will more than double Antam?s contained nickel in ferronickel capacity from 11,000 tonnes to 25,000 tonnes per year.

The project is funded with US$200 million Notes issued in 2003 by Antam?s subsidiary Antam Finance Ltd., US$30 million from an investment credit facility provided by BCA, a domestic bank, as well as internal cash.

The unincorporated consortium of Mitsui Co. Ltd. and Kawasaki Heavy Industries, of Japan, built FeNi III as a turnkey contractor and Wartsila Corporation of Finland built, and now operates, the 102 megawatt power plant. The power plant was switched on in April 2005 and provides more consistent power to Antam?s entire ferronickel facility. (end of release)