Dayaindo to build nickel smelter in Cilegon
Friday, June 29 2012 - 01:51 AM WIB
PT Dayaindo Resources Tbk, a publicly listed company engaged in mining, trading, shipping and power generation, plans to build a nickel smelter in Cilegon, Banten this year, with total investment of about US$150 million.
?We will build a nickel smelter this year with investment of about US$150 million, this year,? the company?s President Director Sudiro Andi Wuguno said.
He said that the nickel smelter would be built in order to comply with the mining law which prohibits the exports of unprocessed minerals beginning 2014.
The production of the smelter which is expected to begin commercial operation in the fourth quarter of this year will be about 1,500 tons a month and can be expanded to 3,000 tons a month.
Sudiro said that the funds to finance the construction of the nickel smelter would comprise of internal funds and bank loans. Up to now, the company had collected about US$60 million in bank loans.
?The US$65 million loans are provided by BNI and International Islamic Trade Finance Corporation,? Sudiro added.
Sudiro also said that the company expected to sell up to 3 million tons of coal this year with estimated sales value of about Rp 1 trillion. About 1.5 million tons of coal would come from its own mines, and the other 1.5 million tons would be purchased from traders, he added.
The large part of coal would be exported to China and India, he said, adding that the other part would be allocated for the domestic market.
Editing by Adianto P. Simamora