7-Eleven operator to boost capacity of nickel smelter

PT Cahaya Modern Metal Industri (CMMI) is investing US$15 million to expand the capacity of its nickel smelter in Konawe Regency, Southeast Sulawesi.

Joseph Renyut, an advisor to CMMI, was quoted as saying by CNN Indonesia that the expansion project, which is targeted to be completed in 2016, will boost the company?s nickel pig iron (NPI) production capacity to 144,000 tons per year from the current 12,000 per year.

CMMI is a subsidiary of IDX-listed PT Modern Internasional Tbk, which operates and manages 7-Eleven convenience store chain in Indonesia.

Joseph said that almost all of the NPI output would be exported to China. Meanwhile, the required nickel ore raw material is obtained from a number of mines in Sulawesi and Halmahera. ?For now, the supply is only about 10,000 (tons) per month or 120,000 (tons) per year. Going forward, it could reach 400,000-500,000 tons per year of nickel ores,? he explained.

Modern Internasional inaugurated the smelter facility in Konawe on December 23, 2013. The $20 million smelter is located Wonua Morone Village, about 194 km west of the provincial capital city of Kendari. The company is making preparations to develop a 2,000-Ha nickel concession near the smelter. (*)