RELEASE: Unfortunate accident at Antam?s gold mine

Jakarta, March 4, 2004 ? PT Antam Tbk announces today that on March 2, 2004, an unfortunate accident accured in one of the tunnel operated by illegal miners near the area of the Kubang Cicau gold vein at Antam?s Pongkor gold mine in West Java. The incident occurred as heavy smoke filled the illegal miners? tunnels and leaked into the adjacent tunnels of Antam?s operation, resulting it the death of one Antam employee and three illegal miners. The source of the smoke is currently being investigated, but Antam denies allegations in the local press that Antam staff members started the smoke to clear illegal miners from their tunnels. A preliminary investigation suggests a smelting fire giving off high levels of carbon monoxide. Due to the high levels of carbon monoxide, Antam personnel have been unable to safely enter the tunnels.

The smoke caused seven Antam miners working in the mine to faint. Six of the rescued miners are recovering, while one miner, Harris Purwadi, passed away after falling into a coma, Antam?s Emergency Response Unit, ERG, managed to evacuate another six of Antam?s employees but was unable to evacuate the illegal miners still trapped within their tunnels due to the heavy smoke.

Antam continues to warn illegal miners about the dangers of underground mining, as well as illegal mining in general, which uses poisonous mercury to extract gold from the ore. Antam has been improving its strategy to reduce illegal mining activities, the bulk of which are performed in the national park neighboring the Pongkor gold mine. The strategy has a three-pronged approach, which includes better community development programs, improved law enforcement and increased support to community activities. However, illegal mining activities continue near some part of Antam?s Pongkor gold mine, including areas adjoining the Kubang Cicau vein, where the accident occurred. Currently, the number of illegal miners is estimated at below 100 people, much lower than 1998-1999, when illegal mining was rampant.

Antam is using industrial blowers to clear the heavy smoke from the mine tunnels and extraction activities are temporarily suspended. Extraction activities are expected to continue soon. None of Antam?s facilities were damaged by the accident.

Management extends its deepest condolences to the family and friends of the deceased and will do all it can to prevent a similar accident from occurring in the future. (end of release)