Orica, Armindo appoint contractor for Kalimantan explosive plant

Explosive maker PT Kaltim Nitrate Indonesia (KNI) on Wednesday formally appointed state engineering firm PT Rekayasa Industri to as EPC contractor to carry out construction of Indonesia?s largest ammonium nitrate plant with contract value of US$173 million.

KNI is a JV company between global explosive maker Orica Limited and explosive imported PT Armindo Prima. Orica holds 51 percent shares in KNI with Armindo holding the remaining balance, KNI President Antung Pandoyo said.

REKIND will construct three main units of the plant; Utility and Offsite Area, Nitric Acid and Ammonium Nitrate Prill Plants.

The plant, which is located in Kaltim Industrial Estate, Bontang, will produce 300,000 tonnes per annum of ammonium nitrate to meet domestic commercial explosive requirement.

Construction will start in July 2009 with completion seen second quarter of 2011, KNI Antung said, adding that investment for the plant would be around $350 million.

Ammonia for the plant will be supplied by PT.Kaltim Pacific Ammonia and PT Kaltim Parna Ammonia with total combined volume of 150,000 tonnes per annum for 20 years, he said.(bernard)