KS selecting investors for Kalimantan steel mill

State-owned steel company PT Krakatau Steel (KS) will soon select strategic investors that will be involved in the development of the company's new steel plant in South Kalimantan, Investor Daily reported Thursday.

KS's president director Daenulhay said in Jakarta Wednesday that the state-owned steel company would invite five potential investors including Essar and Ispat from India, Metallurgical China Construction (MCC), Sino Steel from China and TransAsia from Ukraine to join the selection process in early August.

"We hope we will be able to become a majority shareholder in the steel plant. But it will be up to the government as the shareholder to decide," he said

He said that the new steel mill which will be built at a total cost of about US$460 million will process pellet with a capacity of one million tons a year and to produce pig iron of 300,000 tons a year.

According to him, there are five areas in East Kalimantan being considered as the location for the new steel mill. They include Tanah Lumbu, Tanah Laut and Kota Baru regencies. (*)