Harita starts construction of nickel smelter in N. Maluku

PT Megah Surya Pertiwi (MSP), a unit of diversified Harita Group, held a ground breaking ceremony on Thursday to mark the start of the construction of a US$320 million nickel smelter project on Obi Island, South Halmahera Regency, North Maluku Province.

Arif Perdanakusumah, Senior Manager of Harita Nikel, which operates the group?s mines in South Halmahera, said in a statement that the smelter facility will utilize the Rotary Kiln Submerged Arch Furnace technology, comprising of three lines, which will require combined electricity supply of 120 MW.

He said that MSP will develop a 3x40 MW coal-fired power plant to supply electricity for the smelter.

Construction of the smelter and supporting facilities including power plants is expected to be completed within 24 months, Arif said.

The smelter will produce ferronickel with annual production capacity of about 190,000 tons, he said, adding that the require nickel ores will be supplied by mines operated by the group and from third parties.

Harita is teaming up with China?s Xinxing Ductile Iron Pipes Co Ltd and other investors in the smelter project. Other partners are Xinxing Ductile Iron Pipes (Singapore) Pte. Ltd, Qiyun Investment Holdings Pte. Ltd, and Corsa Investments Pte. Ltd.

Editing by Reiner Simanjuntak