ID :
20038
Wed, 09/17/2008 - 20:21
Auther :
Shortlink :
https://www.oananews.org//node/20038
The shortlink copeid
ANTAM TO REDUCE DEPENDENCE ON ANTAM TO REDUCE DEPENDENCE ON NICKEL BY DIVERSIFYING ITS ACTIVITY BY DIVERSIFYING ITS ACTIVITY
Jakarta, Sept 17 (ANTARA) - PT Aneka Tambang Tbk (Antam) will reduce in stages its dependence on nickel for its income and will start diversifying its industrial activity among others to coal mining, a company spokesman said.
"At present, around 78 percent of our income is contributed by nickel products. In stages, we will reduce our dependence on nickel and next year we will have reduced it to 75 percent," Antam president director Alwin Syah Loebis said here on Tuesday night.
He said the price of several commodities including nickel had slumped because of the current turmoil in global stock markets. The price of nickel at present was US$8.5 per pound which was burdensome to Antam although it was predicted to reach US$9 to US$10 per pound by the end of this year, he said.
In the first semester of this year the price enjoyed by Antam nickel was around Rp12.55 per pound or down 21.46 percent from the same period last year, he said.
To overcome the situation, he said, the company's management had to think hard. To assure its income it would take two big steps namely cutting up to 10 percent from the budgeted level the cost of production until the end of this year, he said.
"This is really hard to do but we will do our best. The second step meanwhile is increasing producion of ferronickel from currently 17,000 tons to 18,000 tons. The aim is to maintain Antam's performance. Hopefully the price of nickel will not drop further," he said.
He said Antam also suffered from the drop in the price of gold. He said the third step to be taken by Antam was diversifying its activities to reduce dependence on nickel.
Because of the bad market condition Antam would focus on only two projects, namely its Alumina Tayan and Pomala coal-fired power plant projects.
In the Alumina Tayan project Antam would invest a total of around US$500 million. Antam would hold 65 percent of Alumina Tayan shares while the rest would belong to a Japanese investor.
He said Antam expected to pay its entire equity contribution early next year so that the project could reach operational state by the end of 2009.
Antam's investment in a coal-fired power plant in Pomala would be around US$300 million. The financing of the project was expected to be settled in 2009 so that it could start operating in 2010, he said.
He said Antam was also considering to engage in coal mining to secure coal supply to the Pomala power plant. "If we produce more than is needed by the Pomala power plant, we will possibly sell the excess coal," he said.
"At present, around 78 percent of our income is contributed by nickel products. In stages, we will reduce our dependence on nickel and next year we will have reduced it to 75 percent," Antam president director Alwin Syah Loebis said here on Tuesday night.
He said the price of several commodities including nickel had slumped because of the current turmoil in global stock markets. The price of nickel at present was US$8.5 per pound which was burdensome to Antam although it was predicted to reach US$9 to US$10 per pound by the end of this year, he said.
In the first semester of this year the price enjoyed by Antam nickel was around Rp12.55 per pound or down 21.46 percent from the same period last year, he said.
To overcome the situation, he said, the company's management had to think hard. To assure its income it would take two big steps namely cutting up to 10 percent from the budgeted level the cost of production until the end of this year, he said.
"This is really hard to do but we will do our best. The second step meanwhile is increasing producion of ferronickel from currently 17,000 tons to 18,000 tons. The aim is to maintain Antam's performance. Hopefully the price of nickel will not drop further," he said.
He said Antam also suffered from the drop in the price of gold. He said the third step to be taken by Antam was diversifying its activities to reduce dependence on nickel.
Because of the bad market condition Antam would focus on only two projects, namely its Alumina Tayan and Pomala coal-fired power plant projects.
In the Alumina Tayan project Antam would invest a total of around US$500 million. Antam would hold 65 percent of Alumina Tayan shares while the rest would belong to a Japanese investor.
He said Antam expected to pay its entire equity contribution early next year so that the project could reach operational state by the end of 2009.
Antam's investment in a coal-fired power plant in Pomala would be around US$300 million. The financing of the project was expected to be settled in 2009 so that it could start operating in 2010, he said.
He said Antam was also considering to engage in coal mining to secure coal supply to the Pomala power plant. "If we produce more than is needed by the Pomala power plant, we will possibly sell the excess coal," he said.
