Waskita to build iron ore processing plant

PT Waskita Guna Lestari, part of Waskita Guna Corporation, plans to build a smelting plant to process iron ore near the company?s mining area in South Lampung, Kontan daily reported on Wednesday.

The company?s general manager, Sophian Rauji, said in Jakarta on Tuesday that Waskita planned to cooperate with a Malaysian company to build the smelter which would have capacity to process 180,000 tons a year.

He said that the investment requirement for the construction of the smelting was estimated to reach about Rp 30 billion. ?We are now preparing the feasibility study for the smelting plant,? Sophian said, adding that Waskita was still negotiating the cooperation plan with the Malaysian company. ?But, we are still open to cooperate with other companies,? he said.

Waskita has a mining permit to explore and produce iron ore on a 100-hectare area in South Lampung. The company began production and exports in July after receiving a clean and clear status from Energy and Mineral Resources Ministry.

The company has been given a quota to export 200,000 tons of iron ores until December. In July, the company exported about 12,000 tons, mostly to China.

Sophian said that the smelter was expected to begin commercial operation in 2014 as its construction would not require long period of time. (*)