Cakra optimistic to meet higher zirconium ores production

By Thomas Sembiring

IDX-listed PT Cakra Mineral Tbk said it is optimistic to meet higher production of zirconium ores at its concession in Central Kalimantan this year as average output level so far has increased to 500 tons per month, from last year?s monthly average of 300 tons.

Cakra Director and Corporate Secretary Dexter Sjarif said last week to Petromindo.com that production this year has been targeted at about 6,000 tons, while output in first six months period has already reached more than 3,000 tons.

He said that the company?s zirconium ores output this year are mostly exported to Europe aside from Thailand, Japan, and China. Buyers are mostly from the chemical and ceramic industries.

Dexter added that the higher output level should help the company ease financial distress caused by losses during the past two years.

Assuming an average price of US$875, Dexter said the company could obtain a revenue of at least $5.25 million from zirconium ore sales as full-year output may even reach 7,000 tons.

Editing by Reiner Simanjuntak