Byzan Gajahpurwa to tap iron sand potential in C. Java

PT Gajahpurwa Dayaguna and Chinese firm Byzantium will soon form a consortium to tap iron sand mining potential in Purworejo, Central Java, with an initial investment of Rp 90 billion, Bisnis Indonesia reported Tuesday.

PT Gajahpurwa Dayaguna?s president director Jasir Alwi said Monday that PT Byzan Gajahpurwa Steel - the name of the would be consortium - was expected to be formed by the end of this month.

?Byzan Gajahpurwa has prepared an initial investment of US$10 million or approximately Rp 90 billion. The funds will be used for exploration activities by using modern but environmentally friendly technology,? said Jasir in Semarang.

Jasir said that the iron sand will be developed as an integrated part with iron ore, steel, power plant for factory and deepwater seaport.

According to him, based on a survey conducted by PT Gajahpurwa Dayaguna, the demand for steel remains great until the next 15 years, with China as the biggest steel consumer. (*)