Gulf Minerals still in talks for land lease in W. Timor
Saturday, May 2 2015 - 06:23 AM WIB
ASX-listed Gulf Minerals Corporation Limited said it is currently holding further discussions for land lease in West Timor, East Nusa Tenggara Province, where it would build a ferro-manganese alloy smelter.
"Further discussions were held on the terms and conditions for a 30 year plus 20 year lease of land in West Timor situated 8 kms from the international Tenau Port and 14 kms South of Kupang City," the company said in a statement Wednesday.
It is anticipated that a Memorandum of Understanding,supported by the Provincial Governor and Regent will be signed shortly, it added.
Company executives visit Indonesia in early February to finalise details for the proposed smelter land in Kupang, West Timor.
Gulf said in March that major site work is due to commence on July 1, 2015 for the first production of high carbon ferro- manganese alloy to be tapped by July 1, 2016.
Gulf is developing as an ASEAN focused manganese ore and alloy producer. The facilities based in the West Timor capital Kupang will take advantage of the low cost of ore, labour and power being the majority of operating costs. Production will bea premium quality 78 percent ferromanganese alloy resulting from the uniquequalities of the Indonesian high-grade low impurities manganese ore.
It is proposed to build 8 furnaces over a 4 year period for a total capital cost of $52million. Each furnace costing $5.6 million has a capacity of 20,000 tons alloy production per year with power supplied by a third party on a user pay basis.
The first two furnaces will be built during 2015 and are expected to come online in January 2016.This will be followed by a further two furnaces each year in 2017,2018 and 2019.
Editing by Reiner Simanjuntak