Tata delays S. Kalimantan iron ore plant project

The world?s fifth steel producer Tata Steel has delayed its US$500 milion iron ore processing plant in South Kalimantan as part retrenchment measure to amid the global economic crisis, Bisnis Indonesia reported on Tuesday.

Director General of Metal, Textile and Miscellaneous Industries at the Ministry of Industry Ansari Bukhari said the global steel industry had reviewed their investment plant following the crisis.

"All steel producers are implementing a large-scale retrenchment program following the downfall of steel price and weak market," he said.

He said Tata's representatives paid a visit to his office two weeks ago, asking for supports for the visit the project's location and a preliminary study.

"There were however no follow-up after that," he said.

Tata planned to build a iron ore processing plant designed with a production capacity of one million tons per year with preliminary study scheduled by the end of this year. (*)