Central Omega cancels iron ore mining

IDX-listed PT Central Omega Resources Tbk has decided to cancel an earlier plan to enter iron ore mining business as based on recent feasibility study the investment cost is quite huge, and that the expected revenue could not cover the cost, Kontan reported on Thursday.

The paper quoted Central Omega Corporate Secretary Yohannes Supriady as saying the company will instead focus on its nickel smelter business.

Central Omega is currently developing a nickel pig iron smelter in Morowali Regency, Central Sulawesi, construction process of which has reached 80 percent as per the first semester of this year. Yohannes said that the first-phase NPI smelter, with a capacity of 100,000 tons per year, and total investment of US$190 million, is expected to be completed in the first semester of next year, but full-production will only start in 2018.

The company is also preparing to develop the second-phase $350 million smelter, with capacity of 300,000 tpa, which is targeted to be completed in 2019.(*)