Cakra Mineral to build smelter in Sumatra
Wednesday, September 18 2013 - 01:09 AM WIB
IDX-listed iron ore company PT Cakra Mineral Tbk plans to build a smelter in Sumatra to process iron ores into steel products.
?We?ll possibly build smelter on Sumatra Island. But we have not yet decided the specific location because we?ll carry out first infrastructure study to assess whether we?ll build it (the smelter) near the resources, port, or electricity source,? Corporate Secretary Dexter Putra told Petromindo.com Tuesday.
The planned smelter will have a capacity of 500,000 tons per year. The company plans to team up with a Chinese firm in developing and operating the smelter.
?The plan is that the MoU for the cooperation in developing the smelter will be signed early next year,? Dexter said.
Cakra Mineral, formerly operates in plantation sector, has an iron ores concession in Sungai Kunyit, West Sumatra run by its subsidiary PT Persada Indo Tambang.
Editing by Reiner Simanjuntak