Indoferro shuts down NPI smelter

PT Indoferro Iron and Steel, which operates a nickel pig iron (NPI) smelter in Banten since 2008, has shut down the smelter since July 20 of this year.

Kontan quoted Jonathan Handojo, a director at Growth Steel Group, the parent of Indoferro, said that the company stopped the operation of the NPI smelter due to two controversial Minister of Energy and Mineral Resources regulations, which among others allow the export of low grade nickel ores and washed bauxite.

Jonathan, who is also Deputy Chairman of the Indonesian Refining and Processing Companies Association (AP3I), has been protesting the new regulations, which he said have contributed to the current drop in the price of nickel, which in turn has led to the closing down of several domestic nickel smelters.

He said that Indoferro is currently in the process of laying off 1,000 workers. The group is also preparing to transfer the Indoferro assets to the banks for sale including nearby cement plant and hard coking coal plant.

Indoferro?s NPI smelter in Cilegon, Banten has installed production capacity of 500,000 tons of NPI per year, serving stainless steel producers and nickel casting foundries in the Asian, European and American markets. (*)