Harita to build nickel smelter on Obi Island
Wednesday, June 3 2015 - 01:18 AM WIB
Indonesia?s diversified Harita Group through subsidiary PT Megah Surya Pertiwi (MSP) will team up with China?s Xinxing Ductile Iron Pipes Co Ltd to develop a nickel smelter on Obi Island in Halmahera Regency, North Maluku Province.
Harita said in a statement Tuesday that total investment for the smelter project that would produce 100,000 tons of ferronickel per year is estimated at US$320 million.
Other partners in the project are Xinxing Ductile Iron Pipes (Singapore) Pte. Ltd, Qiyun Investment Holdings Pte. Ltd, and Corsa Investments Pte. Ltd.
To ensure nickel ore supply for the project, MSP will sign supply agreement with to affiliated nickel mining firms in Obi PT Trimegah Bangun Persada and PT Gane Permai Santosa.
MSP will also build a 3x40 MW power plant to supply electricity to the planned smelter, the groundbreaking of which is scheduled to take place in the middle of this month.
Editing by Reiner Simanjuntak