KS to cooperate with Saudi firm in S. Kalimantan iron plant project

State owned steel producer PT Krakatau Steel may cooperate with Saudi Arabian company Al Tuwairqi in the construction of its iron plant to be built in South Kalimantan, Investor Daily reported on Wednesday.

KS's president director Daenulhay said in Jakarta on Tuesday that representatives of the steel company would soon carry out a series of negotiations with the Saudi company on the cooperation plan.

According to him, the Saudi company had expressed its interest to take part in the steel project. "But we need to further negotiate details of the cooperation. The most important thing is that KS should become the majority shareholder in the project," he added.

He said that the construction expected to be commenced next year after general exploration in the iron ore mine was completed later this year.

On Nov 13, Daenulhay said that KS might team up with a South Korean company in building a US$450 million iron pellet plant.

The steel plant construction project cost is estimated to reach around $450 million. The plant will have an output capacity of 1 million tons of iron pellet per year. (*)