:: Antam Switches On FeNi III Smelting Plant

Revenues to Increase Significantly on the Back of Much Higher Nickel Production

PT Antam Tbk is pleased to announce it has switched on the FeNi III ferronickel smelter following the completion of a 28-month construction period that began in October 2003. Switch on of the smelter took place on February 12th, 2006 during a ceremony held at Antam's nickel business unit at Pomalaa, Southeast Sulawesi. After the switch on, the smelter enters the commissioning stage and Antam's contractors will gradually increase the power load over 60 days to a level of 42 megawatts (MW). At this power load, Antam's FeNi III smelter will have begun commercial operations. Antam expects to produce 20,000 tonnes of nickel contained in ferronickel in 2006, a significant increase compared with 2005 ferronickel production of 7,338 tonnes.

The US$320 million FeNi III project includes a new smelter and power plant and will more than double Antam's contained nickel in ferronickel capacity from 11,000 tonnes to 25,000 tonnes per year.