Bukaka seeks to export low grade nickel ores
Thursday, August 31 2017 - 10:09 AM WIB
IDX-listed engineering and construction company PT Bukaka Teknik Utama Tbk, which owns nickel concession in Palopo, South Sulawesi Province, is seeking possibility to export low grade nickel ores.
Bukaka President Director Irsal Kamarudin said to Petromindo.com recently that the company was making preparations to apply for export recommendation permit with the Ministry of Energy and Mineral Resources. ?We?re making preparations to apply for export quota,? he said.
The government earlier this year introduced a new regulation allowing miners to export low grade nickel ores with purity of less than 1.7 percent on certain conditions including having developed domestic smelter or have put in place plan to build the smelter, the progress of which will be evaluated by an independent auditor as basis for the ministry to issue the export recommendation letter and export quota.
Bukaka has put on hold construction of a planned nickel smelter in Palopo pending recovery in the price of nickel in the international market.
The company?s subsidiary PT Bukaka Mandiri Sejahtera early last year acquired a 51 percent stake in nickel mining firm PT Mitra Karya Agung Lestari, which operates nickel concession in Palopo that would supply the nickel ores to the planned ferronickel smelter.
Editing by Reiner Simanjuntak