Gulf Minerals plans to develop alloy smelter facility in Indonesia
Thursday, April 10 2014 - 01:54 AM WIB
ASX-listed Gulf Minerals Corporation Limited, through its fully owned subsidiary International Manganese Group Limited (IMG), proposes to develop an alloying smelter facility based in Indonesia taking full advantage of the low cost high grade low impurity manganese ore, low cost of labor and modest cost of power.
The company said in a statement Thursday that production will be a premium quality 78 percent manganese alloy resulting from the unique qualities of the Indonesian ore blended with overseas ores to enhance the iron content to produce an optimum ferromanganese alloy.
It is proposed to build 8 furnaces over a 3 year period for a total capital cost of $36m funded by a A$25 million IPO on the Catalist Board of the Singapore Stock Exchange in the second half of 2014 and operational cashflow. Each furnace has a capacity of 20,000 tons alloy production per year. Production power will be supplied by a third party on a user pay basis under 9 cents/kilowatt hour, the company explained.
The first 2 furnaces will be built during 2015, coming on line January 2016, with a further 4 online January 2017 with the final 2 online January 2018.
Editing by Reiner Simanjuntak