JAKARTA (Yosefardi) – PT Cakra Mineral Tbk (CKRA) allocates capital expenditure (capex) of US$15-20 million for funding ferronickel (FeNi) smelter which costs US$50 million.
The company has in June 12, 2014 signed memorandum of understanding (MoU) with Zhe Jiang Baoli Mining Co Ltd for building FeNi smelter, located in Kolawe, North Sulawesi. The construction will start in third quarter of this year and takes 1.5-2 years for the completion.
The smelter will have, at first phase, capacity of 36,000 tons of ferronickel.
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.