Sebuku suspends smelter operation
Friday, February 19 2016 - 01:14 AM WIB
IDX-listed mining firm PT Sebuku Iron Lateritic Ores Tbk, which operates iron ore mine and a smelter on Sebuku Island, Kotabaru Regency, South Kalimantan, has suspended production activity at the smelter due to the lingering commodity downturn.
This was said by Director General of Mineral and Coal Bambang Gatot Ariyono on Thursday, but did not provide further details.
Sebuku in October of 2014 reportedly suspended export of iron ore concentrates, after making one shipment in September, due to falling price of the commodity. Iron ore concentrates from Indonesia are also seen less competitive that products from Australia and the Philippines due to less Fe content.
To help survive the tough condition, the company in February of last year requested for a withdrawal of US$1 million of the total $12.3 million smelter guarantee fund it deposited, which was approved by the government in April. Sebuku is developing a second smelter on Sebuku Island, but it remains unclear whether the project is still in progress given the difficult condition.
Editing by Reiner Simanjuntak