KS?s new subsidiary begins operation
Thursday, November 22 2012 - 02:54 AM WIB
PT Meratus Jaya Iron & Steel, a joint venture between state owned steel company PT Krakatau Steel (KS) and state mining firm PT Aneka Tambang (Antam), has officially commenced the operation of its iron rotary kiln and a power plant in South Kalimantan.
Krakatau Steel announced on Wednesday that Meratus Jaya had begun the operation of the first of the two units of its rotary kiln, which both have capacity of 315,000 tons a year, and the first of its two power generator units with a capacity of 14 megawatt each.
?The rotary kiln has begun its operation to produce iron sponge from iron ore from a local mine, while the power plant is operated using gas waste from the rotary kiln,? KS said in a statement submitted to the Indonesian Stock Exchange.
It added that the excess of the power supply of about 18 MW would be sold to the local community in cooperation with state electricity company PT Perusahaan Listrik Negara.
KS and Antam established the joint venture on June 9, 2008 to produce iron sponges. KS hold a 66 percent stake in the joint venture, and the remaining 34 percent is owned by Antam.
Editing by Benget Besalicto Tnb.