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Kalla Group targets phase 2 nickel smelter completion in 2027
The company has concluded the first phase of the nickel smelter, which it aims to begin operations gradually this year.
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PT Poso Energy, a Kalla Group renewable energy subsidiary, operates the 515 megawatt (MW) Poso hydropower project in Poso, Central Sulawesi. (Kalla Group/-)
T
he Kalla Group, a conglomerate owned by the family of former vice president Jusuf Kalla, will begin construction of the second phase of a Rp 10 trillion (US$613.5 million) nickel processing and refining facility in Luwu, South Sulawesi.
The second phase of the nickel smelter, operated by PT Bumi Mineral Sulawesi (BMS), is slated to be completed by 2027, which will expand its production capacity by 31,400 tonnes per year.
“The target is to complete phase two of the smelter construction in 2027,” Zumadi SM Anwar, Kalla Group’s marketing, strategy and digitalization director said in Jakarta, as reported by Bisnis, on Tuesday.
Zumadi said the company had concluded the first phase of the nickel smelter and it aimed to begin operations gradually.
It will begin producing ferronickel with a capacity of 33,000 tonnes annually by the first half of this year. The company will also begin producing nickel sulfate with an annual capacity of 31,400 tonnes in the second half of this year.
He went on to say that the smelters would use 100 percent renewable electricity from state-owned electricity company PLN as well as PT Malea Energi’s hydropower plant.
Malea Energi, also under the Kalla Group, operates a 90-megawatt (MW) hydropower plant in South Sulawesi, which began its commercial operation in 2021.
