Krakatau Steel gets raw material for small iron processing plant
Monday, July 9 2007 - 02:08 AM WIB
State owned steel maker PT Krakatau Steel (KS) has got a guarantee for the supply of 600,000 tons of iron ore per annum for a small iron ore processing plant worth US$64 million to be built in Kotabaru, South Kalimantan, Investor Daily reported on Monday.
Director General of Metal, Machine, Textile and Miscellaneous Industries Ansari Bukhari said in Jakarta last week that the supply comes from two Mining Contract (KP) holders in the region, namely PT Yinwa and PT Sebuku Iron Lateric Ores (Silo)
The government said recently it may ban ore export in a bid to secure feed to domestic steel industry which is now on expansion mode.
The new plant designed with an annual production capacity of about 300,000 tons is expected to operate in 2008. “We shall use our internal cash to finance the development of the plant,” KS's president director Daenulhay said on Jan 02, 2007.
Daenulhay said that the construction of the new plant would not be part of the company's earlier plan to build a US$450 million integrated steel plant, in cooperation with Saudi company Al-Tuwairqi.
"We will go ahead with our plan to build an integrated steel plant with a capacity of one million tons a year together with Al-Tuwairqi aside from the construction of the mini iron ore processing plant," he said. (*)