Weda Bay obliged to build smelter

Nickel mining company PT Weda Bay Nickel has recently agreed to construct hydro-metallurgy plant as a greenfield project in both Central and East Halmahera of Maluku Utara.

The decision is a result of the government's contract amendment talks signed between the ministry of energy and mineral resources and the company on February 4th.

The agreed obligation on smelter construction subjected to Weda Bay also includes the construction of supporting infrastructure, upgrading nickel ores into nickel with low carbon emission.

In addition to nickel smelter construction, the contract amendment talks between both parties also agreed on downsizing of contract of works (KK) area, terms of production operation production, utilization of local products and manpower, as well as the hiring of local contractors.

Divestment obligation and royalty, nevertheless, will need to be further discussed.

Editing by Er Audy Zandri