Well Harvest suspends construction of second smelter
Monday, October 17 2016 - 01:13 AM WIB
The paper quoted Erry Sofyan, President Director of PT Harita Prima Abadi Mineral, as saying that the company has been facing financial difficulties amid the current export ban on bauxite ores, while it has yet to make sufficient revenue from the first smelter.
Harita and China?s Hongqiao Group have completed the construction of its first smelter grade alumina plant in Ketapang, with a capacity of 1 million tons per annum, which started commercial production in June. The companies were supposed to build a second smelter, with the same capacity, with investment requirement of about US$1 million.
?We?ll not continue with the construction of the second smelter due to limited funding amid export ban on bauxite ores by the government,? Erry said.
He said that first smelter has produced a total of 225,000 tons of alumina as per end September, with full-year target of 500,000 tons.
He said that the output has been exported to China, with a price of $250 per ton, lower than the production cost plus amortization of $280 per ton. Erry hopes the government to provide incentives including allowing the export bauxite ores for the company to be able to raise funds from export to finance the smelter project. (*)