Akar Mas hopes nickel smelter to start operation this year

By Thomas Sembiring

Nickel mining firm PT Akar Mas Internasional, which owns two nickel concessions in Southeast Sulawesi Province, hopes to be able to start operating its nickel smelter in the second semester of this year.

Harun Basnafal, President Director of Akar Mas told Petromindo.com on Monday that construction progress of the smelter project has now reached around 80 percent.

He said that the smelter will have a capacity of 500 tons of nickel pig iron per year. He added that the company is teaming up with a Russian investor in the smelter project, the output of which will be exported to Russia, China and Japan. He did not disclose the identity of the Russian investor.

Akar Mas plans to increase nickel ore production by 50 percent this year from around 2 million tons last year from its concession in Pomalaa. Meanwhile, its concession in Tabaena has yet to start production.

Editing by Reiner Simanjuntak