Govt to develop smelting industry cluster

The government will develop a smelting industry cluster in a mineral ores rich province in Indonesia as part of the country?s program to create efficient mining downstream industry, Kontan reported on Monday.

Thamrin Sihite, the director general of mineral and coal at the energy and mineral resources ministry, said in Jakarta last week that the roadmap for the development of the smelting industry cluster was now being drafted.

The government had not yet decided on the location of the smelting industry cluster. ?But we are considering to build the smelting industry cluster in eastern Indonesia,? he said.

Meanwhile, Vice Minister of Energy and Mineral Resources Rudi Rubiandini said that Halmahera could be chosen as the location of the smelting industry cluster because many nickel miners operate in the area.

?It would involve an investment of between US$1 billion and $2 billion if Halmahera is chosen as the location for the smelting industry cluster,? he said. According to him, at least 185 companies have registered to build smelters in the country to take the advantage of the country?s mining downstream industry program.

Beginning in 2014, the government will ban exports of unprocessed metals. It means that miners should build their own smelters or cooperate with smelting companies to process their mineral production.(*)