ANTAM raises production capacity this year

Jakarta, 6 May 2021 – PT Aneka Tambang Tbk (ANTAM), member of MIND ID, the Holding State Enterprise for the Mining Industry, signs the Heads of Agreement for the Development of a Nickle Smelter together with Alchemist Metal Industry Pte, Ltd. and PT Gunbuster Nickel Industry, on 6 May 2021. The signing was witnessed by Minister of State-Owned Enterprises, Erick Thohir, and Minister of Investment/Head of the Capital Investment Coordinating Board (BKPM), Bahlil Lahadalia, and the Director General of Mineral and Coal, Ridwan Jamaluddin.

The Heads of Agreement signifies a new initiative for the nickel smelter business ecosystem for ANTAM in North Konawe and North Morowali, Southeast Sulawesi, and is a new milestone for the MIND ID Group in maximizing the added value of nickel resources in Indonesia.

Minister of Investment/Head of the Capital Investment Coordinating Board (BKPM), Bahlil Lahadalia, expresses support for the efforts to raise the added value of the nickel commodity. “In making Indonesia’s economic transformation a reality, the downstream orientation aspect becomes important as it is capable of bringing in investment. This cooperation is very positive for ANTAM as the company experienced in the mining field, to raise the added value of the nickel commodity,” said Bahlil

Expressing the same thoughts as the Minister of Investment/Head of BKPM, Vice Minister I of State-Owned Enterprises, Pahala Nugraha Mansury, states that “The Ministry of State-Owned Enterprises encourages MIND ID to continue with its downstreaming program as the future of Indonesia in transforming the economy through the management of natural resources lies in the downstream area.”

“The cooperation between ANTAM and partners is a win-win collaboration, as capital investment entering Indonesia contributes in driving economic transformation. In the next four years, the state enterprises in the mining industry are expected to become one of the anchors to bring investment into Indonesia,” Pahala added

MIND ID Group CEO Orias Petrus Moedak said that this agreement is an implementation of one of MIND ID’s mandates, which is downstreaming. “The cooperation between ANTAM and its strategic partners will raise the added value of the mineral commodity, thereby optimizing the contribution of the Company to the state,” Orias explained.

Orias went on to say that ANTAM has a solid nickel portfolio with more than five decades of experience in managing the nickel mineral from upstream to downstream. While the partners in this agreement have the necessary processing and refining technology, and at the same time, able to absorb the processed nickel products.

“This ecosystem is a new business opportunity for ANTAM, which begins from developing the nickel ore mining to the smelter project which produces ferronickel or pig iron nickel,” he explained.

The cooperation with strategic partners enables ANTAM to gain optimal benefits as the parties will have a role based on the portion of their share ownership in the upstream business (mining) and in the downstream business (smelter). Upstream, ANTAM will cooperate with a partner to conduct mining operations. The nickel ore produced will be sold to the smelter based on the mineral benchmark price. Downstream, ANTAM will own shares in the smelter project when the plant operates commercially.

The development and operations of the smelter project consist of three lines, respectively 45 MVA nickel smelter and 135 MW capacity power plant.

MIND ID will continue to focus on expanding the downstreaming of mineral processing, expansion of the reserve and resource basis, and entering into partnerships to develop new processed mineral production from existing reserves.