Chinese firms to invest $2.4b

A total of eight Chinese companies planned to invest a combined US$2.4 billion to build smelters in Bantaeng Regency, South Sulawesi, to process nickel ores into various value added products such as ferronickel, reports said on Thursday.

Director General for Manufacturing Industry Base, Harjanto said that the Bataeng Regency administration has allocated about 3,000 hectares of land for the construction of the eight smelter projects.

Expert staff to the Bantaeng Regent, Vincent Gowan, was quoted by Investor Daily as saying that the Chinese firms will partner with local investors. The Chinese companies will each invest about $300 million, he added.

He said that local miners have expressed commitment to provide the necessary raw material for the planned smelters, and that state-owned electricity company PLN has also assured the electricity supply.

Vincent said that about 3-4 companies are set to realize their investment plans this year including PT Titan Mineral Utama, PT Huadi Steel Group, and PT Macrolink Co Ltd. (*)