Bukaka suspends nickel smelter project due to weak price

By Thomas Sembiring

Petromindo|Thomas

IDX-listed engineering and construction company PT Bukaka Teknik Utama Tbk has suspended construction of its ferronickel smelter project in Palopo, South Sulawesi, thus delaying planned completion this year, due to the lingering weak nickel price.

?In the meantime, the nickel smelter project is put on-hold,? said Irsal Kamarudin, President Director of Bukaka, to Petromindo.com on Tuesday.

He said that completion of the smelter project will depend on nickel price development, pointing out that if nickel price could stabilize at more than $10,000 per ton, the company may resume construction of the project next year.

The estimated Rp 400 billion ferronickel smelter project, supported with loan from Exim Bank, was initially targeted to be completed in the first semester of this year.

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