Home / Directory / List News / Detail News

Antam (ANTM) is ready to boost bauxite production as the Mempawah smelter commissions next month

JIBI-Nurul Hidayat

Wed 21 Aug 2024, 09:52 AM

Share

Events

PT Aneka Tambang Tbk. (ANTM), also known as Antam, is set to increase its bauxite ore production next month in line with the commissioning plan for the Phase I Smelter Grade Alumina Refinery (SGAR) project in Mempawah, West Kalimantan.

Antam's Corporate Secretary, Syarif Faisal Alkadrie, stated that the company will ramp up bauxite ore production capacity to supply raw materials to the alumina plant.

"In relation to the SGAR commissioning plan this year, the company will indeed increase bauxite ore production capacity to meet the supply needs of the SGAR plant," Syarif confirmed on Wednesday, August 14, 2024.

The bauxite refining plant project is a joint venture between Inalum, which holds 60% of the shares, and PT Aneka Tambang Tbk. (ANTM), which holds the remaining 40%.

SGAR Mempawah Phase I, with an investment value of USD 831.5 million, is expected to add 1 million tons of smelter-grade alumina (SGA) production capacity, with upstream bauxite absorption capacity of 3 million tons. Full commercial operations are targeted for February 2025.

During the commissioning phase, the target alumina production is set at 60,000 tons, with bauxite requirements ranging from 250,000 to 270,000 tons.

However, Faisal clarified that the sales of alumina products produced from SGAR Mempawah will not be consolidated into Antam's sales performance.

"Since the SGAR plant is managed by an affiliate company, Antam will benefit as a shareholder," he explained.

As previously reported, the commissioning of SGAR Mempawah is seen as a positive catalyst that could enhance Antam's financial and operational performance in the second half of 2024 and the following year.

The bauxite-to-alumina refining plant is scheduled to begin commissioning in September 2024, with the commercial operation date (COD) set for February 2025.

"This could lead to improved performance in Antam's bauxite and alumina segments in the second half of 2024, especially given the substantial capacity," said Miftahul Khaer, an analyst at Kiwoom Sekuritas Indonesia, during an interview with Bisnis on Monday, August 12, 2024.

Kiwoom Sekuritas Indonesia has recommended a "buy" for ANTM shares, with a target price of IDR 1,330 per share.

In terms of financial performance, Antam recorded a decrease in net profit attributable to the owners of the parent entity, amounting to IDR 1.55 trillion in the first half of 2024. This profit is 17.95% lower compared to IDR 1.88 trillion in the first half of 2023.

Despite this, the diversified mineral company recorded a 7.05% year-on-year increase in total sales, rising from IDR 21.66 trillion to IDR 23.18 trillion in the first half of 2024.

Antam's sales were primarily driven by gold products amounting to IDR 18.82 trillion, nickel ore at IDR 1.9 trillion, ferronickel at IDR 1.52 trillion, alumina at IDR 724.94 billion, and silver at IDR 34.80 billion. Additionally, revenue from precious metal refining services totaled IDR 98.18 billion.

Advertisement

Relate News

News
26 Mar 2024, 10:35 AM

IFSH Seeks New Investors to Acquire Nickel Mine

Pasardana.id
3031 Views
News
13 Oct 2022, 08:00 AM

United Tractors (UNTR) Spends IDR 4.45 Billion on Exploration

www.emitennews.com
2652 Views
News
08 Jul 2022, 13:23 PM

IATA Starts Coal Production in South Sumatra

www.tambang.co.id
2788 Views
News
28 Jul 2023, 10:00 AM

Huayou Cobalt boosts nickel capacity in Indonesia

Huayou Cobalt
3322 Views
Hello! We would like to talk to you.Please fill the details below to start chatting with us.