Antam Expects Nickel Output of 17,000 Tons in 2010

JAKARTA, Oct. 16 -- PT Aneka Tambang, an Indonesian nickel producer, expects output of the stainless steel-making material to rise 42 percent next year, matching 2008's output, after resuming operations at its biggest smelter unit.

    "We'll be back to 17,000 tons of nickel output level next year, with sales of 18,000 tons," President Director Alwin Syah Loebis told reporters today in Jakarta. The company expected to produce 12,000 tons of ferronickel this year, selling 14,000 tons, including supplies drawn from stockpiles, he said.

    Nickel futures have gained 58 percent this year, recouping part of last year's decline as demand recovers. PT International Nickel Indonesia, the nation's biggest producer, said yesterday that prices between $18,000 a ton and $19,000 a ton were a "fair" level, less than current prices.

    Antam, as the Jakarta-based company is known, restarted the Feni III smelter in Pomalaa, Southeast Sulawesi last month after maintenance, and the plant may reach full operation in November, Loebis said. Feni III has capacity of 12,000 tons, while the Feni I and Feni II units both have capacity of 5,000 tons. The company produced 17,000 tons of ferronickel in 2008.

    Nickel for delivery in three months on the London Metal Exchange declined 0.5 percent to $18,500 a ton at 4 p.m. Singapore time.

    Antam plans in February to seek bids from companies for the construction of an alumina plant in Tayan, Kalimantan, Loebis also said. Kalimantan is the Indonesian part of Borneo island.

    (Source: Bloomberg)