Antam?s sponge iron plant to begin operation this year

A sponge iron plant currently being built by state mining company PT Aneka Tambang (Antam) and state owned steel company PT Krakatau Steel is expected to begin commercial operation this year.

Antam?s corporate secretary Bimo Budi Satriyo said in Jakarta on Thursday that the construction which was commenced in 2009 was expected to be completed on schedule at the end of this year. He, however, said that the delay in the construction of the power plant for the project might affect the operation schedule of the sponge iron smelting plant.

He said that the US$150 million sponge iron project, which is 34 percent owned by Antam and 66 percent by Krakatau Steel, was expected to be able to produce sponge iron of about 300,000 tons a year.

The sponge iron will be supplied to KS? steel plant in Cilegon, Banten.

The sponge iron plant is one of five big projects which will be undertaken by Antam as part of its expansion plan. The projects include the Chemical Grade Alumina (CGGA) plant worth US$450 million in Kalimantan, the US$1.6 billon FeNi smelting plant in Halmahera and the upgrading project worth between US$459 and 500 million for the Pomalaa ferronickel plant.

?The other two projects are the Nickel Pig Iron (NPI) plant in Mandiodo which is worth US$350-400 million and the grade alumina smelter in Menpawa which is worth about US$1 billion,? Antam?s president director Alwin Syah said during a hearing with the House of Representatives (DPR) recently. (*)