JAKARTA (Yosefardi) – PT Cakra Mineral Tbk (CKRA) has in June 12, 2014 signed memorandum of understanding (MoU) with Zhe Jiang Baoli Mining Co Ltd for building ferronickel smelter (FeNi).
The government of Indonesia intends to terminate contracts with miners in Indonesia which do not build smelter.
Otherwise, the government opts to provide incentives for smelter projects such as the adjustment of export duty and tax allowance.
Some eight investors from China are interested to invest on nickel smelter project in Indonesia. The investment is expected to reach US$4 billion, equivalent Rp47.2 trillion. The smelter project will be located in Bantaeng regency, South Sulawesi.