KS to start construction of small iron ore processing plant in S.Kalimantan

State owned steel producer PT Krakatau Steel (KS) will start the construction of its US$50 million mini iron ore processing plant in Kotabaru, South Kalimantan in May 2007, Investor Daily reported on Wednesday.

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 in Jakarta Tuesday.

He said that the plant which would be built in Kotabaru near Pulau Laut would take the advantage of the existing infrastructure so that the construction would not take a long time.

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. (*)