Central Omega, Chinese firm to build NPI smelter

IDX-listed mineral miner PT Central Omega Resources Tbk is teaming up with a Chinese investor to build a smelting facility with the capacity of 160,000 tons of nickel pig iron (NPI) per year.

Ciho Darmawan Bangun, Director of Operation, told Kontan daily on Tuesday that the construction is slated to begin mid next year.

To operate the smelter, the firm will also develop a 48 MW power plant. Ciho said a feasibility study has just been completed and environment impact analysis permit is about to be issued in December.

The plan is a change in direction for the company, which late last year announced it would partner with Taiwan's Asiazone Co.Ltd to build a 200,000 tons a year ferronickel smelter.

Central Omega is now postponing the plan and would focus instead on the NPI smelter development.

?The partnership with the Taiwanese investor is still on, but more for the long-term," Ciho said.

Central Omega estimates that production this year would reach 2.3 million to 2.5 million tons of nickel ores, about the same as last year. (*)