Harita to start N. Maluku nickel production in 2008

Indonesian mining group Harita Jaya Group through its subsidiary PT Kemakmuran Pertiwi Tambang will start nickel ore production from one of their mines in East Halmahera, North Maluku province early next year.

Harita GM Development Indrasmara told Petromindo.Com in Thursday interview that the mine, which covers an area of 300 hectares, would initially produce 150,000 metric tonnes of saprolite and limonite ore per month, ramping up to 300-400,000 tonnes per month the following year. All production will be exported to China, he said.

Total mienable reserves from the mine is 10-12 million wmt, which will be fully depleted in 5 years, he said, adding that Harita currently has 18 nickel mining permits (KPs) in Halmahera and Sulawesi, covering an area of 50,000 hectares. “This year, we will commence exploration in 17 KPs to get nickel reserves estimates,” he said.

Should reserves in the surrounding of Halmahera and Sulawesi reach 120 million wmt, the company plans to build a smelter to process the ore, he said.

Elsewhere, he also said that the company had closed operations of its East Kalimantan coal-mining subsidiary PT Dharma Puspita Mining since June 2007 due to reserves depletion. The 3rd generation CCoW company, which commenced production in 2004, is on in the process of rehabilitating the mining area.

Harita also has small coal mining concession in Marangkayu in East Kalimantan with reserves of 1 million tonnes coal with CV value of 5,800-6,000 Kcal/kg. The coal will be appropriated to as fuel should the company decide to build nickel smelter in Halmahera, he said.

Harita is also in JV with Canadian firm Asia Gold to venture in copper-gold project in Maluku. (denny)