TUBAN (RAMBU ENERGY) – Vice Minister Susilo Siswoutomo officially inaugurated the groundbreaking of PT Multi Baja Industri ferronickel smelter in Tuban on Saturday (2/11/2013).
The construction of this smelter, scheduled to be commissioning in 2016, is expected to generate multiplier effect for local as well for national economy.
Vice Minister Susilo appreciated all parties involved in the process including from the Investment Board, Ministry of Industry and local government. Th3e smelter has the capacity of 110,000 ton of ferronickel (11% Ni) and 400,000 ton of slag. The amount of nickel ore required to feed the smelter is around 1,200,000 WMT in the 1st stage of the smelter. This project will spend around US$ 221 million with capital expenditure of around US$ 190 million.
The government has encouraged companies and investors to build smelter as an implementation of the Law No 4 of 2009 on Mineral and Coal. The law mandates the government to bar exports of raw mineral.