Central Omega to start nickel production this month
Tuesday, March 1 2011 - 02:46 AM WIB
COR president director Kiki Hamidjaja said in Jakarta on Monday that production activities at the nickel mine would be carried out in March. The mine, which is located in South East Sulawesi is owned and operated by its subsidiary PT Bumi Konawe Abadi (BKA), he said.
?We have found nickel reserves of 3.67 million tonnes during the exploration of about 50 hectares of the mining area,? he said, adding that the total mining areas owned by BKA reached about 438.6 hectares.
He said that COR had secured loan commitment of about Rp 50 billion from local banks to finance mining activities. But the company had not intended to use all of the loans because it planned to issue right shares to meet the funding needs.
According to him, the rights issue will be carried out as soon as the bourse has resumed the trading of its shares.
IDX suspended the trading the company?s shares in May, 2009 because the company had not begun the commercial production of the mining company, following the change in its core business.
COR has signed 600,000 tonnes per annum of nickel sales contract with Hong Kong based firm Minecore Resources Inc. The contract is effective March this year. (*)