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tate nickel producer PT Aneka Tambang revised upward its nickel sales target for next year as the predicted global economic recovery is expected to spur demand.

Antam president director Alwinsyah Loebis said on Thursday the company now targeted to sell 19,000 tons of ferro nickel in 2010, higher than the initial target of 17,000 tons.

"We expect that the global economic recovery will take place in the second semester of next year and will result in higher demand for nickel," he said.

With such an increase, the company can expect to post an increase of 35 percent in sales volume as compared to that of 2009.

The increase in sales is in line with the expected rise in produc-tion now predicted to reach 18,500 tons in 2010, up from 12,000 tons in 2009.

Alwin said the additional production would come from the nickel smelter in Pomalaa, Southeast Sulawesi, also known as Feni III, which started operation last September after an almost one-year breakdown.

On the back of higher demand, Alwin said that the price of nickel would likely average between US$7 and $8 a pound next year, higher than the estimated average of $6.5 a pound this year.

Alwin said that the company would spend $180 million in capital expenditure next year, of which $70 million would be allocated to routine spending, $30 million for acquiring gold and coal mines, $40 million for cash reserves and $40 million for the newly acquired Cibaliung project in West Java.

Antam will use its internal cash for its capital expenditure. However, Alwin added that the company would remain open to the possibility of seeking loans to finance attractive acquisition options in the future.

He did not elaborate on this.

Earlier this year, Antam acquired Cibaliung gold mines in a deal worth $8 million.

Alwin said that Antam gold production would reach a total of 3 tons next year, as the company was expected to gain about 500 kilograms per year from the newly acquired Cibaliung project.