Indosmelt to start construction of smelter in February

Smelting company PT Indosmelt plans to start construction of a US$1.5 billion smelter that would produce copper cathode in Maros, South Sulawesi, in February of this year, Kontan daily reported on Tuesday.

The paper quoted Indosmelt President Director Natsir Mansyur as saying that the company has raised the capacity of the planned smelter to 180,000 tons per year from the original plan of 120,000 tons per year to help achieve greater economic value. ?The margin from copper cathode smelter is very thin, that?s why we will take various efficiency measures,? he said.

He added that Indosmelt plans to set up cooperation with cement firm PT Semen Tonasa and PT Petrokimia Gresik for the sale of the smelter?s byproducts such as copper slag.

The company is currently in the process of completing land acquisition for the planned smelter. Of the targeted 100 hectares, it has so far acquired 30 ha.

Elsewhere, Natsir said as quoted by Bisnis Indonesia daily that going forward, once the smelter has started production, the company plans to launch an initial public offering. Previous reports said that Indosmelt hoped to complete the smelter in 2017. (*)