Sulawesi Mining to Build an US$1.06 Billion Smelter Plant

Senin, 29 April 2013 | 09:46


PT Sulawesi Mining Investment, joint ventured between Bintang Delapan Group and Tsingshan Group to build nickel smelter in Morowali, Central Sulawesi with an investment of US$1.06 billion.The Company’s Vice President Commissioner Halim Mina said the smelter construction is divided into two stages and it’s expected could be operated by end 2014.

Currently, the first phase construction reached 30%, while for the second phase will begin in July 2013.

The investment for first phase construction reached US$320 million including provision of 38 megawatt (MW) generators. While the investment for second phase around US$640 million including for building 450 MW power plants.

Halim said the company spent US$100 million for mining and other supporting facilities. Thus, until second phase the company invested US$1.06 billion.

Later, the first smelter will produce 300,000 ton per year nickel pig iron with pure nickel by 7% or 21,000 tons, while the second one will produce 500,000 tons with pure nickel of 12%, he said after meeting with Industrial Ministry, Thursday (4/25).

Bintang Delapan Mineral VP, Alexander Barus said the smelter will produce ferronickel. “We have plan, after ferronickel, we will produce stainless steel,” he said.

Alex said most of nickel production will be exported to China as domestic demand is not quite high. (msw)

by Riendy Astria, Elok Ani Rian
source http://en.bisnis.com