JAKARTA (Yosefardi) – Iron ore producer PT Cakra Mineral Tbk (CKRA) plans to build iron pig smelter by end of 2015 or early 2016 in West Sumatra, Bisnis.com reported.
The smelter, with production capacity of 1 million tons per year, will cost US$100 million to US$150 million.
The company has yet to export iron ore to China as it has not obtained license for exporting minerals products. The iron ore produced by CKRA’s unit, PT Persada Indo Tambang, is sold to PT Visi Utama Mandiri.
As China’s economy is now slowing down, CKRA plans to supply its iron ore for domestic market since early 2014. China is biggest importer for commodities from Indonesia.