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To: LoneClone who wrote (41999)	8/24/2009 9:41:40 PM
From: LoneClone	Read Replies (1) \| Respond to of 193686

NTERVIEW-Indonesia's Antam seeks Newmont unit shares by Reuters News on 24 August 2009, 12:26 PM communities.thomsonreuters.com * Antam says Newmont operations fit with its core business * Shortlists three coal mines for acquisition * Seeks new partner for new nickel project By Fitri Wulandari and Tyagita Silka JAKARTA, Aug 21 (Reuters) - Indonesia's PT Aneka Tambang Tbk wants to buy shares in a unit of Newmont Mining Corp. if the state mining firm gets a green light from the government to invest, Antam's president director said on Friday. An arbitration court in March ordered foreign shareholders of PT Newmont Nusa Tenggara (PT NNT) to sell part of their stake to local investors, or to the government, within six months, resolving a long-running dispute over a contractual divestiture. Jakarta and local governments in Sumbawa Island, where the mine is located, would buy a 14 percent stake in two tranches in 2008 and 2009 for $493.6 million, Finance Minister Sri Mulyani Indrawati said last week. Antam President Director Alwin Syah Loebis said in an interview that the firm had submitted its interest to buy shares. "Newmont's operation in copper and gold are in line with Antam's core business," Loebis said. Antam, which has a stock market value of $2.32 billion, is involved in the exploration and production of nickel, bauxite, iron sands, gold and silver, as well as smelting ferronickel. So far, the finance ministry has not decided who will be allowed to purchase shares from foreign shareholders at PT NNT. Newmont and Japan's Sumitomo Corp own 45 percent and 35 percent respectively. But Energy Minister Purnomo Yusgiantoro has said if the government went ahead with the purchase it could assign Antam or the government investment body Pusat Investasi Pemerintah (PIP). Loebis said investing in Newmont fitted with the firm's strategy of buying mature mining assets to help counter the impact of weak nickel prices and the financial crisis. "If we want to invest our equity or cash in times of crisis, we have to see our investment giving a quick return, that can quickly produce," he said. Local media has reported Antam had been appointed to head a consortium of state-owned enterprises to buy Newmont shares, but Loebis said such consortium had not been formed. Antam is also looking for coal mines at either the exploration or production stages and has shortlisted three for possible acquisition this year, Loebis said. "Aside from supplying energy for our power plants, we expect to gain fast return by trading coal once we get the right mines," he said. Antam, in which the state has a 65 percent stake, uses about 200,000 tonnes of coal a year in its ferronickel smelters, but annual consumption may rise to 2 million tonnes once a new power plant is completed. NICKEL OUTPUT The firm is also seeking new partner for its integrated nickel project in eastern Indonesia after BHP Billiton Ltd pulled out from a conditional joint venture agreement to form with Antam last year, Loebis said. The agreement with Antam was cancelled after it failed to obtain government permission by Oct. 31, 2008 to exploit the resource in Halmahera. The project will include a new ferronickel smelter -- FeNi 4 -- which Loebis said is expected to produce between 20,000-27,000 tonnes of ferronickel a year and may cost about $1.6 billion. Prices of Nickel -- used in stainless steel -- have gained about 62 percent so far this year to $18,885 a tonne on Friday but are still about 64 percent below a record high of $51,800 a tonne hit in May 2007. Despite a rebound in prices, Antam is maintaining its ferronickel production target for this year at 12,000 tonnes, nearly 32 percent lower than 2008 output of 17,566 tonnes. "Gains in nickel price are not sustainable because global nickel supply is still ample. So we are now trying to maintain production at the lowest cost possible," Loebis said. LME nickel inventories at the end of July amounted to almost 33 days of demand, little changed from nearly 35 days in end-April when inventories reached 14-year highs. (Editing by Ed Davies)