Thursday, 2nd October 2014

China Nickel to build smelter in South Kalimantan

Jumat, 22 Juni 2012 19:34 WIB | 2.050 Views
Jakarta (ANTARA News) - China Nickel Resources Holdings Company Limited plans to begin building a smelter in South Kalimantan on July 4, 2012, Energy and Mineral Resources Minister Jero Wacik said.

The smelter plant was expected to start operating in 2014, he said, after receiving China Nickel CEO Dong Shutong here on Thursday.

The construction of the smelter was in line with the mineral and coal mining law, which mandated the management of domestic mining no later than 2014, he noted.

The smelter would process iron ore and nickel, Jero said.

The iron ore smelting plant was expected to produce one million tons of iron billet and 600 thousand tons of feronickel per year, he added.

Meanwhile, China Nickel was expected to invest US$600 million in the first phase of the construction of the smelter. In total, the project would cost an estimated US$1.5 billion, he said.

Earlier on Tuesday (June 19), representatives of China`s GCL-Poly Energy Holdings Limited also met with Jero Wacik to explore the possibility of constructing a nickel smelting plant in Kalimantan.

The Chinese company expected to build a nickel smelter and a coal-fired power plant with a capacity of 3,000 megawatts, he said.

The smelter would receive raw material supplies from small-scale nickel mining companies in Sulawesi, Maluku and East Nusa Tenggara, he said.

Data from the Energy and Mineral Resources Ministry indicates that 150 investors had applied for permits to build smelters in the country through May 21, 2012. (*)