KNI inaugurates operation of ammonia nitrate plant

PT Kaltim Nitrat Indonesia (KNI), a joint venture between Indonesian and Australian companies, officially inaugurated Friday the operation of the company?s ammonia nitrate plant in Bontang, East Kalimantan, Kontan reported.

The factory which has a capacity of 300,000 tons a year is the country?s largest ammonia nitrate factory. The factory occupies a 10-hectare complex in Bontang.

The company?s President Director Untung Pandoyo said that the operation of the new ammonia nitrate, the main raw material for the production of mining explosives, would help lessen Indonesia?s reliance on imported products.

At present, Indonesia imports about 550,000 tons of ammonia nitrate or about 70 percent of the domestic demands.

Untung said that with the operation of the factory PT Kaltim Nitrate would be able to add the supply of ammonia nitrate of about 300,000 tons a year in the domestic market.

He said that with the current price of ammonia nitrate of between $550 million and $600 million, the company also expected to book revenues of between $104.5 million and $114 million this year.

Kaltim Nitrate was established in 2001 by Armindo Group of Indonesia, and Orica Investment Pty Ltd of Australia, which respectively holds 51 percent and 49 percent stakes.(*)