COMPANY OVERVIEW

OBJECTIVES AND DESCRIPTION
In 1968 Antam became a limited liability state-controlled diversified company following the merger of several single commodity mining companies. With operations and ore deposits throughout Indonesia, Antam has over three decade’s experience as a low cost mineral producer. Antam is vertically integrated to undertake all stages of the mining process from exploration, mining, smelting and refining through to marketing. As well as relatively low costs, Antam’s strength is its vast high quality ore reserves and mineral resources and 53 valid mining licenses over 1.0 million hectares of tenements throughout the mineral rich and relatively untapped archipelago, including those held by its joint ventures with international mining companies.

To raise money for expansion and major factory overhauls, Antam listed on the Jakarta and Surabaya Stock Exchange in 1997, where the public trades 35% of the shares. This move was also made to improve the governance of the company. In 1999, Antam listed its shares as a Foreign Exempt Listing in the form of Chess Depository Interests on the Australian Stock Exchange. In 2002, the status of the listing was augmented to the more stringent, full ASX Listing. Although there is still corporate governance work to be done, the transparency of the company has improved, with continuous disclosure of material information and annual reporting of ore reserves and mineral resources according to international standards.

Objectives of Antam - Enhancing Shareholder Value
Although Antam started life as a state-controlled entity, it’s company objectives have for several years been aligned to the capital market and creating shareholder value, not to following the directives of the state. With it’s 65% holding at the end of 2003, the Government is but one, albeit the majority, shareholder. Antam’s main objective is to enhance shareholder value by lowering costs while profitably expanding operations in a sustainable manner. To achieve this Antam is investing in the expansion of its nickel facility at Pomalaa. This move will more than double Antam’s nickel output, and due to increased efficiency and economies of scale, lower Antam’s per unit cost of production. The company’s next expansion is the Tayan chemical grade alumina project, which will capitalize on Antam’s vast bauxite reserves and resources in West Kalimantan. Antam cannot control commodity prices so it concentrates on what it can control, which is production volumes and to a lesser degree costs. As well as capacity expansion, Antam attempts to lower its costs with the Cost Reduction Program, which saves money by improving productivity and lowering expenditures. To offset rising fuel prices, Antam will where possible use lower quality fuel. As well, the impact of currency fluctuations can be somewhat controlled by adjusting purchases made abroad and domestically.

A mining company cannot operate sustainably without continuing to replenish its reserves. To do this Antam budgets 5% of the previous year’s export revenues to explore its numerous territories and augment classifications of known deposits. This money is referred to as risk capital in the mining business. However, Antam has confidence in its exploration unit, which was entirely responsible for the discovery of Antam’s gold mine, Pongkor. To further the chances of mine development Antam also seeks to form joint ventures with international mining companies. Normally these partnerships do not require a cash contribution from Antam for its minority stake in the project. By adhering to international standards of environmental management and by treating the people living in the communities near the mine sites respectfully, Antam seeks to ensure safe and disruption-free operations. Antam has created 4 new board committees to add to the audit committee, including risk management, good corporate governance, mine closure, and remuneration, nomination and human resources and has an independent commissioner, which forms the structure for further improvements to the governance of the company.

PT ANTAM Tbk
Gedung Aneka Tambang Jl. Letjen T.B. Simatupang No. 1
Lingkar Selatan, Tanjung Barat Jakarta 12530 - Indonesia
Phone : (62 - 21) 789-1234, (62 - 21) 781-2635, Fax : (62 - 21) 789-1224
email: corsec@antam.com - www.antam.com