Despite higher production, Cakra delays smelter projects
Friday, April 1 2016 - 03:08 AM WIB
The paper quoted company Corporate Secretary Dexter Sjarif Putra as saying that monthly production level normally stood at 350-400 tons, but output in January had reached 400-500 tons, in February 500-600 tons, and in March 700 tons amid stronger demand from consumers in Germany, Japan, Italy, and Ukraine.
Cakra?s zirconium out primarily comes from its subsidiary PT Takaras Inti Lestari in Central Kalimantan, while another subsidiary PT Murui Jaya Perdana has only started production recently.
Dexter, however, said that despite the strong demand, price remains low, a factor that has prompted the company to postpone export to China. As such, he declined to provide sales project for this year. Zirconium price currently stands at around US$950 per ton, compared to $2,150 per ton in 2013.
The relatively lower price has also forced Cakra to postpone the planned development of $60 million iron ore smelter in cooperation with Z&N International Co Ltd., and ferronickel smelter with Shanxi SuoEr Technology worth $68 million, Dexter said.
He added that Cakra has also postponed a planned acquisition of a coking coal project amid lingering drop in coal price. (*)