Cakra seeks partner to process iron ores
Wednesday, September 17 2014 - 01:37 AM WIB
IDX-listed mining company PT Cakra Mineral Tbk hopes its subsidiary PT Persada Indo Tambang to be able to sign cooperation agreement in the first quarter of next year with a third-party company to process and refine its iron ores into value added products for export.
Cakra said in a filing with the Indonesia Stock Exchange that Persada Indo, which operates an iron ore concession in South Sulok, West Sumatra, has not been able to export the commodity since January 12 of this year following the introduction of new government policy banning the export of raw mineral commodities, requiring miners to process them first at domestic smelters to generate valued added for the country.
Cakra, a former plantation firm which switched into the mining business in April of 2012 after acquiring an 88 percent stake in Persada Indo, said the subsidiary currently has about 5,322.46 metric tons of iron ores stock worth about Rp 2.43 billion, which could not be exported following the export ban policy.
The company said that it may seek to sell the raw commodity in the domestic market.
Cakra reportedly planned to develop a ferro nickel smelter in Konawe, North Sulawesi, teaming up with a Chinese state owned firm called Zhe Jian Baoli Mining Co Ltd. The smelter was expected to be completed in 2016.
Editing by Reiner Simanjuntak