Central Omega Resources? nickel ores production up 24.5%

IDX-listed PT Central Omega Resources Tbk saw nickel ores production during the first nine-month ending September of this year increased by 24.5 percent to 1.93 million tons from 1.55 million tons in the same period of last year, Kontan daily reported Thursday.

Company Corporate Secretary Yohanes Supriady, however, said that the full-year production target of 4 million tons is unlikely to be achieved as the current heavy rainfall has undermined production at its subsidiaries. The current weak price of the commodity will also undermine production activities, he added.

Yohanes said that production this year is estimated to reach only 2.3-2.5 million tons.

Central Omega reported that as of the third quarter of this year, revenue increased by 18 percent to Rp 581.13 billion on higher nickel ores production.

In addition to producing nickel ores, Central Omega has said it was planning to develop ferronickel smelter, with capacity of 200,000 tons per year, either in Marowali, Central Sulawesi or in East Java. The company, Kontan said, has teamed up with Asiazone Co Ltd to develop the smelter and a 200 MW power plant, with total investment of $350 million. (*)