SBY urges for more mining investment

President Susilo Bambang Yudhoyono called for more investment in the mining sector on Monday despite recent fuel prices hike.

"There will be a new equilibrium following the fuel prices hike. There is no need to be afraid to invest," he said at the officiating ceremony of state-owned mining company PT Aneka Tambang's power plant and ferro-nickel smelter.

The dual-firing power plant has a capacity of 102 megawatts while the smelter will have a capacity of 15,000 tons per year when it starts production in 2006.

The total investment for the power plant and smelter is US$320 million.

Currently, PT Aneka Tambang has two ferro-nickel smelters with an annual production of 11,000 tons.

Susilo also officiated the start of another ferro-nickel project belonging to publicly listed smelter PT INCO in Soroako, South Sulawesi which will increase PT INCO's annual capacity from 160 million pounds to 200 million pounds by 2009.

The $280 million project includes the construction of a 90-megawatt hydropower plant in Karebbe, South Sulawesi. (*)