Krakatau Steel mulls coking coal mine acquisition
Friday, January 14 2011 - 02:32 AM WIB
The company?s marketing director Irvan Hakim said in Jakarta Thursday that KS was still exploring the possibility to cooperate with coking coal producer PT Borneo Lumbung Energi and Metal Tbk to ensure a long-term supply of coking coal for the steel company.
KS needs about 2 million tons of coking coal a year to support the company?s plan to expand the company?s hot rolling steel production from 2.5 million tons a year at present to 3.5 million tons in 2012.
Besides Borneo, the only coking coal producer in Indonesia, KS also planned to cooperate other coking coal producers in other countries to meet the company?s growing need for coking coal.
A joint venture between KS and South Korean company Posco is currently building a hot rolling steel mill in Banten. The new plant which is expected to begin operation in 2014 will need coking coal supply of 6 million tons a year, and between 7 and 8 million tons of iron ores.
The steel plant which will occupy an area of about 3,800 sq meter near KS?s existing steel plant complex will have a production capacity of 3 million tons in the first stage. The construction of the first-stage plant is scheduled for completion in 2013.
The second plant which would be built soon after the first one has been completed would produce hot rolled coil with a capacity of 3 million tons. (*)