Merukh works with Indian firm on iron ore mines

JAKARTA: Domestic mining company Merukh Enterprises, owned by politician-turned-businessman Jusuf Merukh, has formed a joint venture with Indian company Salgaocar Mining Industries Pvt. Ltd. to develop two iron ore mines on Sumba in East Nusa Tenggara.

Merukh Enterprises’ subsidiary PT Sumba Prima Iron (PT SPI) signed the deal with Salgaocar last week.

“The joint venture was established to accelerate the exploration and exploitation of the ore mines. We expect the mines to start operation by the end of 2011,” Merukh Enterprises’s president director and CEO Rudy Merukh said in a press statement released Tuesday.

The two mines are estimated to contain 692.22 million metric tons of iron ore.

Rudy said PT SPI held a controlling stake of 55 percent in the joint venture, while Salgaocar owned 20 percent stakes. The remaining 25 percent is owned by German company ESG Eisenerz-Stahl GmbH.

Merukh Enterprises is also in talks with several potential partners to develop five other iron ore mines also located on Sumba. — JP