Antam to supply 8,000 tons of iron ore to Krakatau Steel

State-owned gold and nickel producer PT Aneka Tambang Tbk (Antam) will soon supply iron ore to state PT Krakatau Steel, a state-owned company, the Investor Daily Indonesia newspaper reported in its Saturday edition.

A memorandum of understanding (MoU) was signed by the both the parties on July 19, 2004.

Krakatau Steel has been facing difficulties in finding the iron ore on international market for quite some time because of China?s import policy. Antam sees this as a good step from the Krakatau Steel and a form of synergy

?Yes, the idea was like that. So far KS (Krakatau Steel) has been importing iron ore from Brazil, but now the competition is fierce. That?s why, KS is searching for alternative sources, including from the domestic companies. Antam has various mineral mining sites, especially iron sand. We thought that we should work with KS. Presently, it is at the MoU level. KS has usked us to fulfill their request,? Antam?s corporate secretary Dohar Siregar told the Investor on Friday in Jakarta.

Iron ore can be obtained from iron sand and nickel. In the first phase, KS has asked for 8,000 tons of iron ore from Antam. The price will be $3-40 range, much cheaper than the international price. (*)