JAKARTA (Yosefardi) – Nickel miner Bumi Makmur Selaras Group sets up a joint venture (JV) company with China-based Hanking Group Ltd, to build smelter, processing nickel into ferronickel.

Tadjudin Hidajat, president director of Bumi Makmur Selaras, said the smelter project will cost US$500 million.

The smelter will be built in South Sulawesi, and is targeted to commence production in May 2014, with first phase production capacity of 10,000 ton per year.

The construction of smelter has been on going, around US$150 million already spent.

In the future, Tadjudin said. Bumi Makmur Selaras will also develop an integrated industrial area consisting of power, cement, and steel plants.

Harita Group, controlled by Lim family, will also build bauxite smelter in Ketapang, West Kalimantan, which cost US$1 billion, equivalent Rp10 trillion.

The project is managed by PT Well Harvest Winning, Winning Investment Co Ltd and PT Danpac Resources Kalbar, a joint venture (JV) between PT Cita Mineral Investindo Tbk (CITA), member of Harita Group, and China Hongqiao Group Ltd.