The nickel smelter is a joint project between publicly listed nickel miner PT Central Omega Resources (COR) Industri Indonesia and Marconing Group from China, with financing support from private lender Bank Central Asia (BCA).

COR Industri Indonesia president director Darwanto Bangun said the smelter would produce nickel pig iron (npi) with a production capacity of 300,000 tons per year.

The smelter development, he explained, would be conducted in three stages, with completion targeted in the first quarter of 2017. The project'€™s value is Rp 5.5 trillion (US$412.5 million).

Darwanto said the first smelter, which would have a production capacity of 100,000 tons npi and cost Rp 2 trillion, would be completed by the end of 2015. A second smelter with the same capacity and the same investment is scheduled to operate in the second semester of 2016.

The third stage of the project, a smelter with a capacity of 100,000 tons npi per year and total investment of Rp 1.5 trillion will follow, and is hoped to begin operating in the second semester of 2017.

'€œEvery smelter will be equipped with a 15 megawatt (MW) power plant,'€ said Darwanto.

Around 90 percent of the smelter'€™s npi product, he said, would be exported to China, while the remainder would be used for domestic needs.

The nickel smelter, he added, could employ around 2,500 workers, with priority given to residents of North Morowali. (ebf)(++++)

Popular

Volcano erupts in North Sulawesi, hundreds evacuated

Dubai roads, airport reel from floods after record rains

Ramadan boosts consumer confidence, retail sales