Home News Indonesia’s ANTAM to Export 1.2MT Nickel Ore, Extend Gold Mining License

Indonesia’s ANTAM to Export 1.2MT Nickel Ore, Extend Gold Mining License

PT Aneka Tambang Tbk (IDX: ANTM) targeting to export 1.2 million wet metric ton (wmt) of nickel ore and proposed to extend gold mining permit in Pongkor, Bogor - Photo by TheInsiderStories

Jakarta (TheInsiderStories)PT Aneka Tambang Tbk (IDX: ANTM), a state-owned miner targeting to export 1.2 million wet metric ton (wmt) of nickel ore until the end of this year, said the chief executive on Wednesday (08/21). The miner also have plan to extend the gold mining permit in Gunung Pongkor, Bogor, which will expire in 2021.

“By the end of this year we want to export nickel ore. Beside, followed the rising of the gold price we also proposed to extend our gold mining permit,” said the CEO, Arie Prabowo Ariotedjo at the Indonesia Stock Exchange yesterday.

Aneka Tambang also known ANTAM, he added, has pocketed permit to export for low grade nickel ore amounted to 2.7 wmt and washed bauxite ore as much of 840 thousand wmt from the Energy and Mineral Resources (EMR) ministry for the period of 2019-2020. In 2018, ANTAM recorded total low grade nickel ore export of 3.9 million wmt and washed bauxite ore export of 920,000 wmt.

Based on the EMR decree Number 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.

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

Commemorating the government’ plan to speed up the ban on export minerals from the initial plan of 2022, Ariotedjo stated the company will loss around Rp2 trillion (US$140.84 million) from assumption revenues around Rp30 trillion. He assured that the planned will not affect the company’ performance because export of raw minerals is only 7 percent of ANTAM’ total sales.

Gold Mining

For the gold mining, the CEO revealed, reserves at the Gunung Pongkor mine had diminished and were expected to run out within two to three years time. However, the company sees that there is still potential for additional reserves from the new excavations at the mine, therefore ANTAM plans to apply another 10 years permit for the mine.

Pongkor’ gold reserves are estimated to reach 3.3 million tons ore or equivalent of 12 tons of gold. This year, ANTAM targeting the gold sales volume around 32 ton.

In the first half of 2019, the miner has sold 15.4 tons of gold. Ariotedjo estimating gold price will ended at $1,400 per ounce amid the trade war between United States and China.

Beside focus on the two products, ANTAM also aimed to build five smelter projects for alumina, blast furnace, ferro-nickel, stainless steel and cobalt. Ariotedjo said that the alumina smelter will be located in Mempawah, West Kalimantan and is targeted to be completed in September. The investment value of the smelter reaches $900 million.

The next project is a blast furnace with an investment value in the first phase worth of $100 million. This smelter will have a total capacity of 32,000 tons, but in the first phase the installed capacity will be repaid around 8,000 tons.

In addition, ANTAM also plans to build a second line of ferro-nickel smelter in East Halmahera with the same capacity as its first line of 13,500 tons. The next project was a smelter for stainless steel end products with a production target 600,000 tons a year.

In this projects the miner will partnering with a Chinese company, Shandong Xinhai to build a smelter in Sorong, Papua or Halmahera, North Maluku. Finally, the company is in talks on building a cobalt smelter that will be used as a raw material for batteries. For this smelter, the company will cooperate with its parent company, PT Indonesia Asahan Aluminium, with a joint investment of 51 percent.

For bauxite, ANTAM is currently focusing on the development of Smelter Grade Alumina Refinery plant in Mempawah, West Kalimantan with its parent company, with an estimated total production capacity of up to 1 million ton SGA per annum.

US$1: Rp14,200

Written by Staff Editor, Email: theinsiderstories@gmail.com