PT ANTM TO INCREASE ANNUAL GOLD PRODUCTION

Jakarta, May 28 (ANTARA) - PT Aneka Tambang Tbk (ANTM) has set itself the target of increasing the output of its gold mines in Cibaliung, Banten, to two tons per year by the middle of 2010, a company executive said.

"We are expecting two tons of gold a year from Cibaliung in the middle of 2010. With the additional production we hope our corporate performance will improve, especially now that the gold price tends to go up," ANTM president director Alwinsyah Lubis said here on Wednesday.

He said to promote the company's performance the management had conducted diversification so that the company's income now did not solely depend on nickel mining.

"The project is in line with our corporate business," he said.

He said in 2008 most of the company's income (68%) was contributed by nickel while in the first quarter of 2009 around 84 percent of its income was contributed by gold sales.

"By the end of 2009 if the price of nickel is stable composition of ANTM's income would be 50 percent from nickel and 50 percent others from gold and other minerals," he said.

The diversifications include acquiring several coal mining concessions. "A due diligence is currently still being carried out with regard to acquiring five coal mining concessions in Kalimantan with a capacity of 10 to 60 million tons a year," he said.

He said the company was now also building a coal-fired power plant in Pomala, Sulawesi. "It is part of an efficiency program," he said.

Regarding plans to purchase Newmont shares, Alwinsyah said it would all depend upon the government as the majority shareholder. "If the government wants ANTAM to do it we will. Of course, we will also consider the business aspects (the result of due diligence)," he said.