Land prep for new steel plant of KS, Posco almost ready
Wednesday, February 1 2012 - 01:58 AM WIB
The preparation of the 400-hectare of land for the location of a new steel plant to be built by PT Krakatau Steel (KS) in cooperation with South Korean company steel producer Pohang Iron and Steel Company (Posco) is almost ready, says KS executive.
Wawan Hermawan, Spokesman for Krakatau Steel said in Jakarta last week that the two company?s joint venture was currently completing the land preparation and the foundation for the project.
The steel plant will include blast furnace, sintering plant, coke oven plant, iron ore material handling system, hot metal handling and other supporting facilities including water, gas and power plants. The furnace will have a capacity of about 1.2 million tons a year. The total investment for the project will reach US$6 billion, half of which will be used for the second stage of the project.
Wawan said that the construction of the coke oven plant and power plant which would have a capacity of 120 megawatt had not been started.
KS has signed a memorandum of understanding with PT Borneo Lumbung Energi & Metal on the supply of one million tons of coking coal for the steel plant. No agreement has been made on additional coal supply from other companies, Wawan said.
Corporate Secretary of PT Atlas Resources Tbk, Aulia Setiadi Aulia, had said that the company still explored possibility of selling its coking coal to KS. At present, PT Atlas produces coking coal at about 25,000 tons a month.
Wawan said that KS and Posco would consider using iron ore from domestic market for the steel plant, which will need about between seven and eight tons of iron ore a year.
"We have a lot of sources for iron ore. We can import from Australia or buy from local producers. But no agreement has so far been made,? he added.
Editing by Roffie Kurniawan