Sulawesi Mining Targets to Start Its Smelter Plant in 2014
- Hits: 1566
PT Sulawesi Mining Investment (SMI), a joint venture company between Indonesia’s PT Bintang Delapan Group and China’s Tsingshan Group, has targeted the first stage of its nickel smelter in Morowali, Central Sulawesi to be completed and start operations by the end of 2014.
The Vice President of Bintang Delapan Mineral, Alexander Barus said that the first stage of the construction is about 30 percent complete.
‘To date, we have spent US$ 100 million from the total investment (including the investment of the second stage) of 1.06 billion,” he said as quoted by the Ministry of Industry in a written statement.
The investment for the first stage is around US$ 320 million, with estimated production of 300,000 tonnes of nickel pig iron per annum.
While the investment for the second stage of the project is US$ 640 million, which will produce 500,000 tonnes nickel pig iron each year.
Alexander said the investment is a response to the Law on Mineral and Coal Mining, which would no longer allow the exports of raw mineral materials in 2014.
Meanwhile, the Vice President Commissioner of Sulawesi Mining Halim Mina said the second stage of the smelter construction will begin in July 2013 as well as the building of a 450-MW power plant.
In addition to producing ferronickel, the Company also plans to produce stainless steel products at the plant in the long term, which will be mostly exported to China. As for domestic market, it will be marketed in line with the demand.