Nusantara Smelting to start pre-FS on Bontang smelter
Wednesday, July 1 2009 - 08:52 AM WIB
?The pre-FS will start end of July and will take around three months depending on the availability of data. Thus, the pre FS will be completed in October this year. The study will be conducted internally as a preparation for the making of bankability study,? President Director Juangga Mangasi said on Wednesday.
The pre-FS which is also called supporting study will asses location feasibility, raw materials availability, utility, market and environmental aspects.
He further explained that the bankability study will take three months from October through December this year. The firm will consult with potential financiers in selecting consultants to carry out the bankability study.
Nusantara Smelting is among a number of firms that plan to build smelters in the country to benefit from the new mining law which requires the refinement of mining ores be carried out in local smelters.
He said the firm is also looking for partner(s) in developing the smelter.?There is a very potential partner, who is the biggest copper player in Europe,? Juangga said, while refusing to divulge the name of the firm.
Juangga explained that he just returned from visits to several European countries such as Germany, Finland, Swedia to approach potential financiers of the project. The project needs an estimated US$1.1 billion investment, including $200 million in working capital for eight months.
With regards the technology that will be used in the smelter, Juangga said the firm is assessing three technologies, respectively provided by Ototec of Finland, Exstrata of Australia and Mitsubishi of Japan.
The firm will get ore supplies from PT Freeport Indonesia and Newmont Nusa Tenggara, which both operate copper and gold mine in Papua and West Nusa Tenggara.
The global economic crisis has forced the company to reschedule the development of the plant. Now, the firm expects to break the ground for the smelter in September 2010 and, after 36 months, the smelter is expected to start production with an annual copper cathode output of 200,000 tons. (Bernard)