Dian delays expansion of zirconium smelter

PT Dian Lestari Sejahtera, one of Indonesia?s zirconium silicate producers, has delayed its plan to expand its existing zirconium smelting plant due to the government?s restriction in zirconium exports, Kontan reported on Wednesday.

The company?s President Director Gunawan Tjandra said in Jakarta on Tuesday that his company was waiting for a revision to the energy and mineral resources ministry?s regulation on the increase in the added value of the country?s mineral products.

Under the regulation, beginning 2014 the government only allows exports of zirconium with purity of 99 percent. ?We will not be able to rely on domestic market because the demand is very limited,? he added.

Dian plans to expand the production capacity of its smelting plant to 10,000 tons a year from about 7,200 tons at present, with additional investment of about US$2 million.

Besides Dian, several other zirconium producers have also reviewed their investment plans to build new smelters or expand the existing facilities due the export restriction. (*)