Bukaka plans to build nickel smelter

PT Bukaka Teknik Utama plans to build a nickel smelter with a capacity of 14,000 tons a year in Palopo, South Sulawesi, Kontan daily reported on Wednesday.

The company?s President Director, Isral Kamarudin said on Tuesday that the construction of the smelter would cost about US$27 million. ?The construction is now under preparation and it is expected to be completed in one and a half years,? he said.

For the construction of the smelter, Bukaka has signed a memorandum of understanding with state electricity company PLN to get electricity supply, Isral said, adding that the smelter would be built on a 100-hectare area in Palopo.

In order to be able to meet the processing capacity of 14,000 tons a year, Bukaka would receive nickel ore supply from two or three nickel mining companies. The total nickel ore supply will reach about 140,000 tons a year.(*)