Indonesian state-owned miner, PT Aneka Tambang Tbk, plans to produce 12,000 tonnes of ferronickel in 2009, down about 32 percent from a year ago in anticipation of slowing demand, the company said in a statement. Antam produced 17,566 tonnes of ferronickel in 2008, down 5.2 percent from 18,532 tonnes in 2007.
"Stainless steel industries, and its end users such as automotive and construction, are forced to cut production in line with fears of global economic recession," Antam said in the statement, adding it was targeting ferronickel production of 12,000 tonnes in 2009. Antam said its FeNi III smelter was currently running at 80 percent of capacity.
Antam's net profit in 2008 fell 74 percent to 1.31 trillion rupiah ($109.4 million), down from 5.13 trillion rupiah in 2007, because of falling nickel prices and lower sales. "As a price taker, our financial performance in 2008 was impacted negatively from lower commodities prices," Alwin Syah Loebis, Antam's president director, said in the statement.
The firm said its revenue fell 21 percent to 9.54 trillion rupiah, from 12 trillion rupiah in 2007. Nickel prices have slumped more than 80 percent to about $10,025 a tonne since hitting a record high of $51,800 in May 2007 on a drop of demand from stainless steel producers on global economic meltdown.
While nickel sales plummeted, Antam's gold sales jumped 96 percent to 9,820 kg in 2008 from 5,000 kg in 2007, boosted by trading between Antam's gold refinery unit, PT Logam Mulia, and third parties. "About 72 percent of Antam's sales volume came from trading with third parties such as retail jewellery outlets and individuals," Loebis said. The average selling price for gold last year rose 24 percent to $873 per troy ounce.