Central Omega signs ferronickel sales deal with Chinese firm
Tuesday, July 4 2017 - 10:07 AM WIB
IDX-listed mining firm PT Central Omega Resources Tbk announced Tuesday that its subsidiary PT COR Industri Indonesia had on June 23 signed a ferronickel sales and purchase agreement with Macrolink Resources Development and Investment Co Ltd.
Central Omega said in a filing with the Indonesia Stock Exchange that under the agreement, COR Industri, which operates a ferronickel smelter in North Morowali Regency, Central Sulawesi, will sell about 7,000 tons (+/- 10%) of ferronickel to Macrolink Resources, a subsidiary of China?s Macrolink Group, with port of loading in North Morowali and China as the country of destination.
?Signing of the ferronickel sales and purchase agreement marks the maiden export of product from the company?s smelter in North Morowali Regency,? Central Omega said in the statement, but did not provide further details.
Central Omega owns 60 percent of COR Industri, with the remaining 40 percent held by PT Macrolink Nickel Development, a local subsidiary of Macrolink Group.
COR Industri operates a ferronickel smelter with installed capacity of 100,000 tons per annum in North Morowali in March of this year. The company plans to expand the smelter in the future.
Central Omega said in June that ferronickel 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.
Editing by Reiner Simanjuntak