Kartika Selabumi signs JV with Chinese coy to exploit nickel

Local miner Kartika Selabumi Group (KSG) on Wednesday signed JV agreement with Chinese firm Zhejiang Hua Guang Smelting Group to exploit the former?s nickel mine in eastern Indonesia.

KSG CEO Michael Tjahyadi told Petromindo.com the JV would build a ferronickel plant in KSG?s nickel mine in SouthEast and Central Sulawesi and East Halmahera.

Michael estimated that the company?s Sulawesi concession has reserves of around 100 million tonnes of ore and Halmahera has 10 million, with nickel content between 0.8-1.5 percent.

He said the JV will build a ferronickel plant with capacity of 3,500 tonnes per annum in Central Sulawesi with completion seen in 2009. The JV will invest US$150 million to develop the mine, he said. KSG will have 51 percent stake in the JV with the Chinese firm controlling the balance. (bernard)