Five zirconium smelters shut down due to falling prices

At least five zirconium smelting companies have shut down their operations in Central Kalimantan due to the sharp drop in the prices of zirconium in the last several months, Kontan reported on Friday.

Ferry Alfiand, the chairman of the association of zirconium miners, said in Jakarta on Thursday that the fall in the zirconium prices to US$1,300 per ton from $1,500 per ton several months ago had made zirconium smelting business no longer economically viable.

?The price of zirconium has been lower than the production costs,? he said, adding that the government?s recent decision to impose export duty of 20 percent at a price of $1,517.06 per ton for zirconium product with 60 percent content further worsened the operations of the zirconium smelters.

?If the government sets the price reference at $1,300 per ton, many zirconium smelters will be able to survive,? he said.(*)