Feni III shutdown, Antam missed target

PT Aneka Tambang (ANTAM) Tbk is forced to shutdown its newly built FeNi III smelter due to the leak from the metal tap hole late last week. That would cost Antam's ferronickel production target for 2006 a significant cut to 13,000 to 16,000 tonnes from the target of 19,000 tones.

ANTAM wrote to Australia Stock Exchange on Wednesday that it requires three months of FeNi III shutdown. Initially ANTAM planned the new plant's commercial operation by first quarter 2006 but delayed due to all conditions for conducting a final plant test had not been satisfied.
FeNi III is being built by a consortium of Mitsui & Co Ltd and Kawasaki Heavy Industries Ltd, Japan. Both companies are responsible for all work and testing prior to the commercial operation of the plant.
Antam's president director Dedy Aditya Sumanagara said, "We're extremely disappointed by this development as we had been operating FeNi III at capacity for one and a half months and were expecting to begin the final test and declare commercial operations at the beginning of July."
A full investigation is underway. No explanation from both Mitsui and Kawasaki on the accident.

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