Mikgro to develop steel plant on Bangka Island

PT Mikgro Metal Perdana plans to build a steel plant on Bangka Island, in North Minahasa Regency, North Sulawesi, to process local iron ore potential.

?We?re still waiting for the operation permit from the Ministry of Energy and Mineral Resources to be able to start field activity. Other requirements in relation for the mining activity in the island such as the Amdal (environmental impact assessment permit) have been fulfilled,? said Mikgro President Director Kaisar Yang as quoted by Media Indonesia daily Monday as saying.

Mikgro, a local subsidiary of a Chinese firm, has completed the acquisition of 2,000 hectares of land, 700 ha of which is believed to have iron ore reserves. ?The iron ore reserves on Bangka Island is estimated at about 4 million metric tons. The quality is quite good to be processed into steel products, that?s why there must a steel plant in the island,? Yang said, adding that the firm plans to invest about Rp 17 trillion, but did not provide further details about the planned steel plant and iron ore mining operation. (*)