Central Omega assessing techs to process nickel ores

By Hiski Damayana

PT Central Omega Resources Tbk has unveiled plans to set up a smelting plant to process nickel ore into ferronickel.

The company is currently assessing two options of technologies on whether to set up an electric furnace or coking coal-fired furnace.

?We are still studying the two options. Perhaps in July, we will be able to decide which option will be taken,? the company?s Chief Commissioner Johnny said in Jakarta.

Each option, according to him, has its weakness and strength. With an electric furnace, the production will be higher with lower operating costs. ?But , we don?t have enough electricity supply in our mining area in Sulawesi,? he added.

Johnny said that state electricity company PLN had suggested to build the smelter in Surabaya, but it would mean the company would have to spend additional cost for the delivery of nickel ores from the mining site.

?The local people near mining will also protest us if we build the smelter outside the mining area,? he said. ?There is a possibility the company will build a coking coal-fired furnace, but the production volume will be smaller. We will lack skilled workers because the plant will be located in very remote area,? he added.

Editing Adianto P. Simamora