Gag Nikel eyeing domestic market for nickel ore output
Thursday, February 16 2017 - 08:22 AM WIB
PT Gag Nikel, a wholly owned subsidiary of IDX-listed mining firm PT Aneka Tambang Tbk (Antam), is eying the domestic market for its nickel ore output, as the company plans to commence production on Gag Island, West Papua, in the second semester of this year.
Ady Taufik Yudisia, PT Gag's Operational Director told Petromindo.com on Thursday that the company is looking to sell its ore output to several smelters in Indonesia. "But there is no specific (contract) yet," he said.
Ady revealed that the company is also conducting internal evaluation for possible export.
The government last month issued new Government Regulation No 1/2017 which among others allows the export low grade nickel ores with purity of less than 1.7 percent. Ady, however, said that the company is now waiting for implementing ruling of the new regulation as technical guidelines for the export. ?We are still awaiting for the implementating guidelines of this (new) regulation," he said, adding that the export market for nickel ore is quite big.
The company is targeting to produce around 1 million tons of nickel ore this year.
Editing by Reiner Simanjuntak