August 09, 2008

Sinosteel to build nickel mine in Indonesia

It is reported that PT Sinosteel, a branch of Sinosteel Corporation of China in Indonesia, has set about building a nickel ore mine in the central Sulawesi district of the Indonesia. The program is projected to have an annual capacity of 500,000 tonnes of nickel ore and start production at the end of this year.

As per report, PT Sinosteel is still engaged in the feasibility research and busy negotiating with building sub-contractors.

The nickeliferous laterite ore of the mine might contain 1% to 2% nickel and will be sold to a newly established ferronickel plant near Tianjing in North China. The plant, affiliated to Sinosteel, can produce 80,000 ton ferronickel a year.

Mr Qian Jin GM of PT Sinosteel said that they have submitted the application for mine exploitation and might get approval from the local government within two and three months. He said that "We started preparation of the project since last July."

Mr Qian added that the output will be doubled to 1 million tonne if the second port is built as schedule near the mine.

Nickel is an important ingredient in steelmaking. This program will ensure Sinosteel needed nickel resource.