Modern seeks to export nickel ore to China

PT Modern Group said its new joint venture called PT Baosteel Resources is expected to start nickel ore export to China this year.

President director of PT Modern group, Henri Tan, was quoted by Bisnis Indonesia as saying that export volume in the first year of production is projected at 600,000 tons, and would increase to 1 million tons in the second year.

He added that Modern?s Chinese partner in the US$6 million venture, Baosteel Resources, will become one of the buyers in China.

The joint venture project is located in Southeast Sulawesi, which is estimated to have reserves that would last for 30-40 years, Henri said, adding that nickel reserves in the province is quite huge and has yet to be maximally exploited by other mining companies.

Going forward, Henri said that the joint venture would look into domestic market after it build smelting facility, possibly in 2014, and finding new reserves.

The company is also planning to build nickel ore processing facility in the longer term to generate greater added value, he added.

Modern Group is domestic diversified business group engaged primarily in retail and property sectors. It has just started to diversify into natural resources and mining sectors. (*)