Antam's Worker - Photo by PT Antam Tbk

JAKARTA (TheInsiderStories) – PT Antam Tbk (ANTAM; IDX: ANTM; ASX: ATM) has received the renewal recommendation permit of mineral export for low grade nickel ore and bauxite oresaid the company on April 2.

The state owned miner get permit to export nickel ore amounted to 2.7 million wet metric ton (wmt) and bauxite ore as much of 840 thousand wmt from the Ministry of Energy and Mineral Resources (MEMR) for the period of 2018-2019,

In 2017, ANTAM has obtained mineral export license of low grade nickel with total amount of 3.9 million wmt in which the export license of 2.7 million wmt was acquired in March 2017 and the rest license of 1.2 million wmt was obtained in October 2017.

Meanwhile the export licenses of washed bauxite export were granted in March 2017.  In 2017, Antam recorded total low grade nickel ore export of 2.73 million wmt and washed bauxite ore export of 766 thousand wmt and aims to produce and sale 1.6 million wmt of bauxite in 2018.

Based on the MEMR decree No. 5 Year 2017 on Enhancement of Minerals’ Added Value through Domestic Mineral Processing & Refining Activity, Antam was categorized as the holder of Mining Business License for Nickel and Bauxite Operation Production which already has been owned and operated the domestic mineral processing and refinery facilities as well as conducted smelter development project.

Under the regulation Antam was allowed to export low grade nickel ore and washed bauxite ore for five year period which renew the export permits for every year.

Antam’s President Director, Arie Prabowo Ariotedjo said: “ANTAM’s nickel and bauxite ore export will boost our mineral downstream initiative which began in 1974 following the operations of the FeNi I ferronickel plant. We currently have a diverse mineral processing facilities for nickel, gold, silver and bauxite.”

In line with the company’s development strategy, Antam has solid commitment in relation to mineral downstream activity. The construction of East Halmahera Ferronickel Plant Development Project remained on the track with construction progress reached 38 per cent at the end of 2017. The plant will have annual ferronickel production capacity of 13,500 TNi whereby construction is estimated to be completed by the end of 2018.

For bauxite, Antam is currently focusing on the development of Smelter Grade Alumina Refinery plant in Mempawah, West Kalimantan with PT Indonesia Asahan Alumunium (Inalum) with an estimated total production capacity of up to 1 million ton SGA per annum.

Indonesia allowed limited exports of nickel ore and bauxite and concentrates of other minerals in 2017 January after the country had faced a hefty budget deficit and missed its 2016 revenue target by $17.6 billion. The government now allows export for up to five years and limited to volumes decided by the government and independent inspectors and only on specific grades.

The nickel ore exports realization in the first half of 2017 reached only 403,000 tons or 5 percent of the export quota of 8.16 million tons or 8 percent of world nickel production.

10 nickel smelters still operate with a total capacity of 1,468,596 tons per year while 13 other nickel smelters are still under construction with a total capacity plan of 1,853,000 per year.

This year, the MEMR is targeting four smelter developments. In the first half of 2017, two smelters have been completed and will be commissioned in September 2017. Both are PT COR Industries in Morowali and Bintang Smelter Indonesia in Konawe with a total capacity of 1.34 million tons.

Meanwhile, two other smelters expected to be completed this year are iron ore smelter PT Sumber Baja Prima with the capacity of 65.847 tons per year in Sukabumi and zinc smelter by PT Kobar Lamandau Industri in Central Kalimantan with the capacity of 60,000 tons per year.

US$1: Rp13,700

Reported by Fauzul Muna, Email: linda.silaen@theinsiderstories.com

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The Insider Stories Founder Linda Silaen has a solid, proven history, established over more than a decade as a journalist with a leading internasional news organization, of being the first with the biggest economic news stories in Indonesia. Specializing in corporate news, Linda is also a veteran of some of the biggest macroeconomic and general news stories as Indonesia rapidly transforms into a major market economy. One of the founders of the original blog from which this company developed, Linda’s knowledge of investors’ information communications and data us developed from unrivaled networking skills that make her a well-known name among CEOs, bankers, government officials and private equity investors both in Indonesia and other countries.

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