JAKARTA: PT Batu Licin Steel, a joint venture between Indonesia and China, will invest US$1.5 billion to build an integrated steel processing plant in Batu Licin, South Kalimantan.
Fahmi Idris, Independent Commissioner of Batu Licin Steel, said the joint venture between China Nikel Resources and PT Jhonlin is planning to build steel plant with a capacity of 3 million tons per annum in two stages.
In the first stage, Batu Licin will develop plant which processing iron sand to iron concentrate and screw with each production capacity of 1 million tons per annum and ferronickel plant with a capacity of 2 million tons per annum.
After the first stage, as Fahmi said, investor will continue to the second stage.
“According to the plan, in April 2013, the company will start to develop the second stage of the plant construction, which will produce steel plate and H-beam with a capacity of 2 million tons per annum,” he said.
The first stage of the plant development will spend US$600 million and the second stage will be US$900 million, said Fahmi, a former Ministry of Industry.
Meanwhile, PT Yiman Mining will supply the raw material for the construction of Batu Licin Steel’s plant.
According to Panggah Susanto, Director of Manufacturing Based Industry at Ministry of Industry, China has 61% interest in Batu Licin Steel, while the rest of 39% is owned by Jhonlin as the local domestic.(T03/aph)
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