Macika, Chinese firm to build ferronickel smelter

Ferronickel maker PT Macika Mineral Industri, a subsidiary of privately owned mining company PT Macika Mada Madana, is scheduled to begin construction of its first ferronickel smelter this month in Southeast Sulawesi, reports said Saturday.

Macika Mineral President Director Alexander PH Roemokov was quoted by The Jakarta Post as saying that said the company would invest about US$15 million to build the 18,000-ton per annum capacity smelter.

He said that the smelter would be built and operated in cooperation with China-based mining company Ningbo Brillimetal Co. Ltd. under a 50:50 joint venture.

Alexander expected that construction of its first smelter, located on a 45-hectare plot in Konawe Regency, would be completed in February of next year.

He added the nickel ore will be supplied by a number of nickel mining companies in the area, and that the ferronickel output would be exported to China. ?There is no demand for ferronickel in the country yet. So we will export it all to China,? Alexander said.

When construction of its first ferronickel smelter is completed next year, Macika will begin construction of two new smelters in Konawe. The two new ferronickel smelters would provide an additional production capacity of 36,000 tons, said Alexander.

?When the three ferronickel smelters start operating, they will be able to produce 54,000 tons per year,? said Alexander, adding that total investment in the three ferronickel smelters was around $40 million.

Construction of two new ferronickel smelters would commence in the second quarter of next year, said Alexander. ?We expect the two new ferronickel smelters to start operating in 2017,? he said.

Indonesia, the world?s largest copper and nickel ore producer, imposed a ban on raw mineral ore exports in January of this year, forcing miners to build domestic smelters to process and refined the raw materials into value added products before exporting them. (*)