Antam Strengthens Domestic Gold Supply Amidst Freeport Disruptions

Strategic Partnership with PTFI

PT Aneka Tambang Tbk (ANTM), Indonesia's state-owned mining company, is maintaining its optimistic outlook on strengthening gold supply from domestic sources. The company has successfully established a crucial supply agreement with PT Freeport Indonesia (PTFI), one of the country's major gold producers. The partnership has already shown positive results with the first shipment of approximately 125 kg of gold being delivered to ANTM in February 2025.

Impact of Freeport's Operational Issues

While there were operational disruptions at PTFI's Grasberg mine during the third quarter, classified as force majeure, ANTM remains confident in its ability to maintain gold supply. The temporary reduction in PTFI's gold supply to ANTM was acknowledged by the company, but it does not appear to have significantly impacted their overall operations. According to Handi Sutanto, ANTM's Commercial Director, the company is aware that PTFI is expected to experience a 30% decline in production next year.

Strategic Implications

The agreement with PTFI is a strategic move for ANTM to secure its gold supply chain. By strengthening domestic sourcing, ANTM is not only ensuring the stability of its raw material supply but also contributing to the national economy by maximizing the use of domestic resources. The company's ability to navigate potential supply chain disruptions demonstrates its robust operational strategy and commitment to maintaining production levels.

Market Outlook

ANTM's proactive approach in securing alternative supply sources positions the company favorably in the market. The expected production decline at PTFI's Grasberg mine, while potentially impactful on the overall gold supply, is being effectively managed by ANTM through its diversified sourcing strategy. As the situation continues to unfold, ANTM's strategic partnerships and operational resilience will be key factors in maintaining its market position in the Indonesian mining sector.