The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region
Issue link: https://asiaminer.epubxp.com/i/830355
18 | ASIA Miner | Volume 14 • Issue 2 | 2017 Indonesia PT ANEKA Tambang (Persero) Tbk (Antam) aims to increase pro- duction and sales of its primary commodities of ferronickel and gold in 2017. The company is targeting production of 24,100 tonnes of ferronickel in 2017, an increase of 19% on the 20,293 tonnes pro- duced in 2016, and also aims to produce 2270kg of gold from its Pongkor and Cibaliung mines, up from 2209kg in 2016. In line with optimal operations of its ferronickel plants, Antam's 2016 ferronickel production and sales reached an all-time high while production of nickel ore and gold were on track. The company's export market contributed 59% of total sales in 2016. Antam has a solid customer base consisting of leading com- panies in Asia. Historically, the customer list also includes European companies based in countries with a strong automotive industry base. For ferronickel, Antam also receives high demand from out- side China. In line with the company's growth projections, construction of the East Halmahera Ferronickel Plant Development Project is on track. Antam is also finalising its next downstream projects to add value to its nickel and bauxite reserves, and is preparing its Line 2 & Line 3 ferronickel plant development projects. The company has recently completed work on the roof replace- ment of its Electric Smelting Furnace (ESF)-3 and optimisation of FeNi III ferronickel plant production facilities in line with its efforts to meet the 2017 ferronickel production target. The optimisation works included relining works of the rotary kiln and rotary dryer as well as modification of the slag pond of the FeNi III ferronickel plant in Pomalaa, Southeast Sulawesi. The works and optimisation were completed 10 days ahead of schedule. Operations director Agus Zamzam Jamaluddin said, "We are con- fident higher ferronickel output will deliver positive results on our earnings coupled with the nickel price which has risen 3% year to date." Antam also continues to add value to its reserves through down- stream projects using internal financing or working with a strategic partner. For bauxite, Antam is focusing on development of a Smelter Grade Alumina Refinery (SGAR) plant with PT INALUM (Persero). Antam has recently been issued an export permit from the govern- ment enabling it to export low grade nickel and bauxite. It obtained two export recommendations for 2.7 million tonnes of nickel ore and 850,000 tonnes of bauxite. THE second stage of exploration at the Trenggalek joint venture project in East Java is expected to be completed by May with a budgeted cost of US$1 million. This is focusing on the Singgahan prospect and is being carried out by PT Danusa Tambang Nusan- tara on behalf of JV partners Arc Exploration and PT Sumber Mineral Nusantara (SMN). Danusa, a subsidiary of one of Indonesia's largest contract min- ers, is managing and funding exploration work at Trenggalek under an agreement arranged in 2015. The tenement is in the Southern Mountains, in an older segment of the Sunda-Banda magmatic arc. Scout diamond drilling on Singgahan prospect in the southeast corner of the Trenggalek Exploration IUP was conducted in 2014. The four inclined diamond holes completed a fence of holes across part of an extensive copper-gold-molybdenum soil anomaly and co- incident magnetic-high anomaly. Porphyry-style mineralisation was intersected in these holes which returned multiple low-grade copper-gold-molybdenum intersec- tions. A petrological investigation completed on selected core sam- ples from these holes confirmed the occurrence of porphyry-style veining and alteration, with copper and molybdenum minerals. Recent mapping in the area has identified porphyry style mineral- isation at the surface. A combined Induced Polarisation survey and ground magnetic survey consisting of 19.9km on 13 lines has been completed. These results combined with existing aeromagnetic data and detailed geological mapping have been used to define drill targets for the second phase of Trenggalek exploration by Danusa. Further ground works, including soil sampling and mapping, have been undertaken in the area of porphyry-style mineralisation ex- posed at surface at Singgahan. Preparations for the second phase work include community and local government consultation with an independent geologist en- gaged to undertake a project review. The JV has received all results for the 2016 diamond drilling cam- paign conducted by Danusa at the Sentul and Buluroto epithermal gold veins. The drilling tested for mineralised extensions within the large veins which were previously identified with scout diamond drill- ing by Arc in 2010/11. Among the significant results were 1.25 metres from 86.5 metres down-hole @ 4.1 g/t gold; 1.1 metres from 113 metres @ 2.46 g/t; and 1 metre from 217 metres @ 1.03 g/t. All these results were from the Sentul West vein. Antam aims to lift production Drilling at the Trenggalek project in the Southern Mountains of East Java. Singgahan prospect focus at Trenggalek