Nine smelter projects suspended

Nine domestic nickel smelter projects have been suspended as the investors await for implementing rulings of the recently-introduced Government Regulation No 1/2017, which among others allows export of low grade nickel ores, Bisnis Indonesia reported on Monday.

The paper quoted Deputy Chairman of the Indonesia Refinery and Processing Industries Association (AP3I) Jonathan Handojo as saying that the investors wanted to see whether the new implementing rulings would bode well for the smelter industry or not. He said that since the introduction of the new government regulation that allows the export of low grade nickel ores there has been concern among the investors that their planned domestic smelters would suffer difficulties in getting the required nickel ore raw materials.

?The nine (smelter projects) have started (construction), but they (the investors) did not complete them. Some were supposed to complete them this year, in fact, the machinery have arrived, but the projects were suspended,? Jonathan said

He said that PT Macika Mineral Industri was supposed to start operating its new nickel smelter in Konawe, Southeast Sulawesi, but suspended the project. Another company PT Sulawesi Mining Investment has also suspended its third nickel smelter project. Russia?s PT Blackspac, and Tsingshan Bintang Delapan have also suspended their smelter projects, which were initially planned to be completed this year.

Other companies adopt a wait and see attitude including PT Jinchuan, PT Transon Bumindo Resources, and PT Wan Xiang, PT Megah Surya Pertiwi, and PT Huadi Nickel. (*)