Central Omega, Macrolink to develop ferronickel smelter

By Romel S. Gurky

IDX-listed PT Central Omega Resources Tbk said it has formed a joint venture with a local subsidiary of China?s diversified Macrolink Group to develop a second nickel smelter in Central Sulawesi.

Central Omega said in a statement Friday that it had on September 14 set up a joint venture firm with PT Macrolink Nickel Development. The joint venture firm, called PT Macrolink Omega Adiperkasa (MOA), will build and operate a ferronickel smelter, with a capacity of 20,000 tons of ferronickel per year, in North Morowali Regency, Central Sulawesi.

The company said it holds a 40 percent stake in MOA, while the remainder 60 percent is held by PT Macrolink. MOA has an authorized capital of Rp 400 billion, or equal to about US$30 million.

Investment for the ferronickel smelter, to be developed with rotary kiln electric furnace technology, is estimated at around $500 million.

Central Omega said in January of this year that PT Macrolink has acquired a 40 percent stake in Central Omega subsidiary PT COR Industri Indonesia, which is developing a nickel pig iron smelter, also in Norh Morowali Regency, using blast furnace technology. The project will be developed in three phases, the first of which expected to start operation next year.

Editing by Reiner Simanjuntak