Central Omega?s nickel smelter starts production

By Romel S. Gurky

IDX-listed mining company PT Central Omega Resources Tbk said that its ferronickel smelter in North Morowali Regency, Central Sulawesi Province, has started production since March of this year.

The company said in a filing with the Indonesia Stock Exchange on Tuesday, that maiden shipment of the ferronickel output was made earlier this month.

Central Omega through its subsidiary PT COR Industri Indonesia, which is 40 percent owned by China?s Macrolink Group, is developing ferronickel smelter in North Morowali in three phase, of which the first 100,000-ton per annum capacity has been completed.

The company said that production this year is expected to reach 50,000 tons, and will increase to nameplate capacity of 100,000 tons starting next year. The entire output is exported to China.

Central Omega said that in line with the existing government regulation, as its nickel smelter has been completed, the company should be allowed to export low grade nickel ores with purity of less than 1.7 percent.

The company said that based on the input capacity of its smelter, it would be entitled to an export quota of low grade nickel ores of up to 1 million tons per year. It plans to export 500,000 tons of nickel ores this year, and to increase the export volume to 1 million tons next year. The company did not say whether it has obtained the required export permit from the government.

Editing by Reiner Simanjuntak