The state own enterprises (SOEs) minister, Erick Thohir, sent a permit letter to minister of energy and mineral resources (MEMR), Arifin Tasrif, to use PT Freeport Indonesia' (PTFI) ex-mining land for the gold mine of PT Aneka Tambang Tbk (IDX: ANTM) - Photo by the Company

JAKARTA (TheInsiderStories) – The state own enterprises (SOEs) minister, Erick Thohir, sent a permit letter to minister of energy and mineral resources (MEMR), Arifin Tasrif, to use PT Freeport Indonesia‘ (PTFI) ex-mining land for the gold mine of PT Aneka Tambang Tbk (IDX: ANTM), he told parliament this week. The issuer is sister company of PTFI and both managed by PT Indonesia Asahan Aluminium (MIND ID).

He highlighted the company with brand “ANTAM”, currently does not have a gold mines. He regretted that the gold resources owned by the country currently had a very large amount, but the state-owned mining companies did not have their own mines.

Currently, Aneka Tambang digging the gold from a mine located in Gunung Pongkor, West Java. However, this mine’ contract will expired in 2021. The Pongkor mine has been operating since 1994. Until December 2018, the issuer has gold reserves weighing 19 tons and gold resources equivalent to 42 tons.

According to the CEO, Arie Prabowo Ariotedjo, reserves at the 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 the producer 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 30 ton. Beside focus on gold and ferro-nickel,  the company 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 2020. The investment value of the smelter reaches $900 million.

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, MIND ID, 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.

Aneka Tambang, 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 MEMR for the period of 2019 – 2020. In the first semester of 2020, the issuer posted a net profit Rp84.82 billion (US$5.73 million), reduced by 80.18 percent from the same period last year at Rp428 billion.

The net sales reached Rp9.23 trillion from Rp14.43 trillion in the same period of last year, or a 36 percent subsidence.

US$1: Rp14,800

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