Bukaka to develop nickel smelter

By Thomas Sembiring

IDX-listed engineering and construction company PT Bukaka Teknik Utama Tbk plans to develop a nickel smelter in Palopo, South Sulawesi, with total investment estimated at around Rp 400 billion.

Bukaka President Director Irsal Kamarudin said on Monday that the company hopes to be able to start construction process of the smelter, with planned capacity of 2,760 tons of ferronickel per annum, in the second half of this year.

The company will source nickel ores from miners around the Palopo region. He did not say when the planned smelter will be completed.

Bukaka on Monday re-listed its shares on the Indonesia Stock Exchange, after have been delisted in the past nine years, a move that is expected to allow the company to help raise public funds including via rights issue to finance various expansion programs including the proposed smelter project.

Editing by Reiner Simanjuntak