Alwin said the rights issue would reduce the government’s ownership in the country’s second biggest nickel producer, so he would request approval from the shareholders.

The Indonesian government holds 65 percent shares of Antam, while private investors hold the remaining 35 percent of the shares. Antam’s shares are traded on the Indonesian Stock Exchange (IDX) as well as on the Australian Securities Exchange (ASX).

In a bid to boost its profits, the company is planning to expand operations and develop six major projects, which include a bauxite processing plant in Tayan, West Kalimantan. The project, aiming at producing chemical grade alumina (CGA) from bauxite reserves, requires around $400 million in investment. Antam will hold 65 percent participating interest of the project, while Japanese companies Showa Denko and Marubeni Corp. hold the remaining 35 percent.

Alwin said that the project was still in the  process of seeking financing and that a tendering process was underway to appoint partners in engineering, procurement and construction.

The company is also planning to build another bauxite processing facility in Mempawah, also in West Kalimantan.

Antam will hold a 55 percent participating interest in the project, while China’s Hangzhou Jinjiang Group will hold the remaining 45 percent of the shares.

Also as part of the program of six projects, Antam plans to build two nickel smelters. The first is a proposed new ferronickel smelter in Halmahera, North Maluku and another is a smelter to produce nickel pig iron (NPI) in Mandiodo, Southeast Sulawesi. The two projects are estimated to cost $1.2 billion and $140 million respectively.

Antam is also preparing a gold mine project and a coal-fired power plant project. The gold mine is located in Cibaliung in Banten province. Antam acquired the mine from PT Cibaliung Gold Mine in July last year. Antam will need to spend $40 million to develop the gold reserve and expects to start production in the second half of this year.

Antam this year expect to spend Rp 2.35 trillion on investment, up from Rp 0.59 trillion last year. Antam booked net profits of Rp 604.3 billion in 2009, a decrease of 56 percent from a year earlier.

Antam expects to produce and sells more ferronickel this year. The company plans to boost ferronickel production from 12,550 tons in 2009 to 18,500 tons in 2010. As for ferronickel sales, the company expects to increase the sales volume from 14,191 tons in 2009 to 19,000 tons in 2010.

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