Harita Group to build nickel smelter in North Maluku

Harita Group, through its subsidiary PT Megah Surya Pertiwi (MSP), plans to develop a US$320 million nickel smelter on Obi Island, South Halmahera Regency, in North Maluku Province.

MSP said in a press statement obtained Monday that it has signed an agreement with nickel ores mining companies PT Trimegah Bangun Persada and PT Gane Permai Santosa, which are affiliated with Harita Group, on the supply of mineral ores (feedstock) for the planned smelter. Company geologist Robby Rafianto said that the miners, which are already in production stage, have enough nickel reserves to support the smelter.

The company plans to launch the groundbreaking at the end of December to mark the construction of the smelter, which will have a capacity to produce 100,000 tons of ferronickel per year.

Meanwhile, Harita will develop a coal-fired power plant to support the smelting facility, which will use an electric furnace technology.

As previously reported, Harita, through subsidiary PT Cita Mineral Investindo, is also developing a 2 million-ton per year alumina smelter, in Ketapang, West Kalimantan, teaming up with China?s Hongpiao Group.

Editing by Reiner Simanjuntak