GTI Resources plans to build ferronickel smelter in RI

By Romel S. Gurky

ASX-listed GTI Resources Ltd said that it has completed initial scope of works in relation to its plan to develop a ferronickel smelter in Indonesia.

The company said in a statement issued Tuesday that a preliminary feasibility study is near completion identifying the robust economics of the planned 100,000 tons per annum ferronickel smelter.

?This study will allow the company to advance discussions with interested parties for the construction of a ferronickel smelter in Indonesia by way of joint venture or other commercial arrangements,? GIT Resources said in a statement, falling short of saying the specific location of the planned smelter.

The company said that there?s opportunity to develop smelters in Indonesia after the government introduced an export ban on mineral ores in January of this year.

?The company has established a presence in Indonesia since 2008 and believes that with the assistance of Australian mining expertise and the strong relationships built up with credible Indonesian partners is now well placed to take advantage of the opportunity,? GTI Resources said.

Significant funding will be required to advance the proposed nickel project, and that funding is currently not in place, the firm added.

The company completed a placement of 7 million ordinary fully paid shares at an issue price of 2 cents per share raising $140,000 in July 2014. The placement formed part of the shortfall from the share purchase plan which closed on 30 April 2014 (SPP Shortfall).

The placement of the SPP Shortfall was made to institutional and sophisticated investors and was on the same terms as offered to shareholders under the SPP.

Editing by Reiner Simanjuntak