Jilin Horoc Metal set to build $6b nickel smelter in Sulawesi
Tuesday, September 20 2011 - 02:42 AM WIB
The company from Jilin province wants to build the plant in Bombana and Konawae in Southeast Sulawesi, Hatta Rajasa, Indonesia?s coordinator minister for the economy, said on Monday.
The island of Sulawesi is rich in minerals such as iron and nickel.
Hatta said the company would set a up a joint venture with Billy Indonesia, a local company, but declined to give a production estimate.
?The project will provide job opportunities for thousands of people,? Hatta said.
Production will begin early next year, he said.
From 2014, all miners in Indonesia will be required to build smelters in an attempt to boost the value of exported commodities and create local jobs.
Under the rule, all mining companies must process raw commodities, including base metals such as tin and nickel, be-fore they are shipped overseas.
?We?ll process it domestically so that there?s no there?s raw material exports,? Hatta said.
International Nickel Indonesia, the country?s largest producer of the metal, announced in July that it will work with two Chinese companies, Baosteel and Pan China, to build a ferronickel smelter in Central Sulawasi. Total cost of the project was estimated at $500 million.
State-controlled mining company Aneka Tambang is also cooperating with state utility Perusahaan Listrik Negara to build an integrated ferronickel smelter and power plant in eastern Indonesia this year.
The plant is planned for construction at Tanjung Buli on Halmahera Island in North Maluku. (*)