Antam's Sponge Iron Meratus smelter in operation this September

By Hiski Darmayana

IDX-listed PT Aneka Tambang Tbk recently stated it targeted to start the operation of Sponge Iron Meratus smelter project in Tanah Bumbu regency South Kalimantan this September, currently in the final construction stage.

Antam's President Director Alwinsyah Lubis stated in Jakarta that the smelter will process iron ore into sponge iron with the installed capacity of 315,000 tons per annum. Antam has 34 percent share in the project, in which PT Krakatau Steel is the majority shareholder with 66 percent share.

The project's electricity will be supplied by a 28MW power plant. 10 to 20 percent of the total raw material demand from Krakatau Steel's plant will be supplied by the smelter after its operation. Krakatau Steel currently in need of up to 3.2 million tons of raw material per annum.

?The project has spent almost US$150 million worth of investment so far," Alwinsyah said in Jakarta.

Editing by Er Audy Zandri