Posted on 16 Jun 2015
Central Sulawesi Governor Longki
Djanggola has officially launched the construction of a Rp 5.5 trillion (US$412
million) nickel smelting plant in Gandaganda subdistrict, Petasia district,
North Morowali regency, Central Sulawesi.
The smelting project, which occupies a 25 hectare area is being jointly
developed by PT Central Omega Resources (COR) Industri Indonesia and Chinese
Marconing Group.
President director of PT COR Industri Indonesia Darwanto Bangun said the
smelter would have an annual capacity of 300,000 tons of nickel pig iron (npi),
a low grade ferronickel invented in China as a cheaper alternative to pure
nickel for the production of stainless steel.
The development, he said, would be conducted in three phases, which were
scheduled to be completed by the first semester of 2017.
“Each smelter will come with a power generator with a capacity of 15
megawatts,” Darwanto said.
The first phase smelter, he continued, would have a capacity of 100,000 tons of
npi and would be worth Rp 2 trillion. This smelter is expected to be finished
by the end of 2015.
The second phase smelter, also with a 100,000 ton capacity per year and a value
of Rp 2 trillion, is scheduled to start operations by the second semester of
2016.
The third phase smelter of the same capacity and a value of Rp 1.5 trillion is
expected to start operation by the first semester of 2017.
Darwanto said that 90 percent of the npi products from the factories would be
exported to China and the remaining 10 percent would be sold for domestic
industrial need.
The factories, according to Darwanto, were projected to absorb some 2,500
workers and would give priority to local manpower from North Morowali regency.
Separately Longki Djanggola conveyed his appreciation to PT COR Indusri
Indonesia for realizing its investment in the province.
He said the factories would give a significant added value to both the
provincial and national economy, especially after the central government banned
the export of nickel ore since Jan. 12, 2014.
“The operation of these factories will for sure increase the people’s income
and move the wheels of both the provincial and national economy such that the
administration can speed up an increase in the people’s wealth,” Longki said.
He also reminded PT COR as well as other holders of mining business licenses
(IUP) in the region to seriously reclaim their respective former mining sites
so as not to damage the environment.
Another a joint venture between Indonesian and Chinese companies, Huadi
Nickel-Alloy Indonesia, is also building a smelter in Bantaeng, South Sulawesi,
which is slated to be the area’s first nickel-processing facility.
The smelter, which may cost a total of $130 million by the final phase of
development, will initially produce 50,000 tons of ferronickel each year, Huadi
Nickel director Jos Stefan Hideky told The Jakarta Post earlier.
“To support our operation, we will source the raw material — nickel ore — from
our own mine in Southeast Sulawesi,” he said after signing a power purchase agreement
with power firm PT Bantaeng Sigma Energi in January.
The smelter’s output would be sent to the firm’s affiliate in China, Jos
revealed.
Huadi Nickel is a joint venture between Shanghai Huadi Industrial Co. of China
and local firm PT Duta Nikel Sulawesi.
The smelter is set to occupy an area of 1,000 hectares in a 3,000-ha plot
provided by the local administration for the establishment of Bantaeng
Industrial Park, planned to become Indonesia’s first integrated iron-and-steel
industrial estate.
