Meratus Jaya to start iron production this month

PT Meratus Jaya, a joint venture between PT Krakatau Steel and PT Aneka Tambang, plans to begin the commercial production of the company?s two sponge iron factories in Batu Licin, Tanah Bumbu regency, South Kalimantan before the end of this year.

Krakatau Steel?s President Director Irvan Kamal said in Jakarta last week that one of the factories would begin commercial production in the middle of November, while the second factory would start the production in the following months.

He said that the total production would be only between 10,000 tons and 15,000 tons until the end of December, 2012. All of the production will be supplied to Krakatau Steel in Cilegon, Banten.

According to Irvan, the two factories have total capacity of 315,000 tons of direct reduced iron a year.

Irvan said that Meratus also operated its own power plant with a capacity of 2 x 14 megawatt using the company?s gas waste. Part of the electricity will be sold to state electricity company PLN which will distribute the power to cope with the electricity shortage in some parts of South and Central Kalimantan provinces.

Krakatau has a 65 percent stake in the joint venture while its partner Aneka Tambang holds other 35 percent. (*)