Seven smelters expected to start operation in 2013

At least seven smelting companies, which are currently building their smelting facilities, are expected to begin commercial operation in the second semester of next year, Kontan daily reported on Thursday.

Director General of Coal and Minerals at the Energy and Mineral Resources, Thamrin Sihite said in Jakarta on Wednesday that the seven smelting companies included PT Bintang Delapan, PT Sebuku Iron Lateritic Ores (Silo), PT Aneka Tambang and PT Meratus Jaya Iron and Steel.

He said that Bintang Delapan and its partner Tsingshan Steel, a subsidiary of Dingxin Investment Group of China, are currently building an integrated nickel mining operation with investment of about Rp 35.6 trillion. Their smelter will process nickel ores from Bintang Delapan?s 20 nickel concession areas in Morowali, Central Sulawesi and Konawe, Southeast Sulawesi.

Meanwhile, PT Meratus Jaya, a joint venture between PT Aneka Tambang and PT Krakatau Steel, has operated one of its two smelters which process iron ores into sponge irons. The first smelter has capacity of between 10,000 and 15,000 tons of sponge irons. Meratus will build the second unit to further increase the capacity. The two smelters will be able to produce sponge irons of about 315,000 tons.

Silo will also build a smelter to process iron ores into sponge iron with capacity of 1 million tons a year in Sebuku, South Kalimantan next year.

Vice Energy and Mineral Resources Minister Rudi Rubiandini said that the ministry has so far received 157 proposals for the construction of smelting plants in the country. (*)