Nickel ore is one of Antam’s important products. Antam produces and exports high grade nickel ore with a minimum 1.8% nickel content and a maximum 25% iron content (saprolite) and low grade nickel ore with a 1.2% minimum nickel content (limonite) and minimum 25% iron content.

Antam has approximately 180 million wet metric tons (wmt) of saprolite and 185 million wmt of limonite reserves and resources which could last for many decades at current extraction rates. While Antam has more than enough ore to support its current long term nickel expansion plans, in order to prolong the life of its own reserves, Antam may seek third party ores to supplement its own supply.

Antam’s nickel ore mines are at Pomalaa, Gee, Tanjung Buli and Mornopo. Pomalaa, Southeast Sulawesi, is Antam’s oldest nickel mine and is nearly depleted. Gee, Tanjung Buli and Mornopo are located in North Maluku.

Antam’s nickel deposits are typically shallow. The limonite rests atop the saprolite, is cheaper to mine and the first to be extracted followed by the saprolite. The ores usually can be easily mined and extracted using an open pit mining techniques using simple truck and shovel operations. No drilling or blasting is required. Little beneficiation is required other than drying and screening and sometimes limited crushing of oversize material. In particular, the lower part of the saprolite ore is often lumpy and requires crushing to reduce it to the required size specifications.

Mining operations at Gee, Tanjung Buli and Mornopo are outsourced to local contractors, PT Minerina Bhakti and Yudistira Bhumi Bhakti, in order to reduce inventory stock and employee and other operational costs. PT Minerina Bhakti is owned by Antam’s pension fund, but the terms were made through a tender and priced on an arms length basis.

Historically Antam extracts around 3.5 million wmt of saprolites annually. However, Antam can easily ramp up extraction levels if necessary. Since 2006, Antam’s annual production has increased substantially due to strong demand.  Some portion of Antam’s saprolite production is used as feedstock to produce ferronickel, however the majority of saprolites are mainly exported to Japan and to Eastern Europe. Since 2007, Antam also exports lower grade of saprolite to China. Limonites were previously entirely sold to Australia but since 2007 it has been exported mainly to China.

VIDEO OVERVIEW:
Please view this video to have a glimpse on how nickel ore is mined and processed to become ferronickel.