Official: Only two smelters to be completed next year

The progress of smelter projects in the country has been moving at a snail?s pace amid various obstacles, with the government saying only two smelters are expected to be completed next year.

?Only a very small numbers of the smelter projects can be completed in 2016, may be only about two,? said Director General of Mineral and Coal Bambang Gatot Ariyono on Tuesday.

He said that of the planned 35 smelter projects, 18 have reached a progress of about 30 percent, most of which nickel smelters. He added that of six planned bauxite smelters, only one has been completed owned by PT Aneka Tambang Tbk.

Smelter projects in the country have been facing various obstacles from lack of funding to difficulties in land acquisition and permitting process. The current drop in commodity prices has further worsened the situation.

Bambang said that the government is considering to provide incentives to help accelerate the domestic smelter projects, but stopped short of disclosing the planned incentives.

The government has banned the export of mineral ores since early last year, except for certain mineral concentrates, pushing miners to develop domestic smelters in a bid to generate greater added value from the country?s mineral commodities. (*)