Indoferro to export iron ores to India

PT Indoferro has secured a long-term contract to export iron ores of about 250,000 tons - worth about US$162.5 million - per year to India, Bisnis Indonesia reported on Monday.

Jonathan Handoyo, Head Business Development at Growth Steel Group, the parent company of Indoferro, said that the long-term contract would be part of the company?s program to further expand its iron ore exports to Asia.

He said that the value of exports to India was not as big as those to Taiwan but it was still important in the company?s market expansion in the Asian region. ?The demand for iron ore for steel industry in Asia is large enough,? he added.

Meanwhile, Indoferro said recently it plans to spend up to $100 million to expand the company?s steel smelting plant in Cilegon, Banten to meet a growing demand for pig iron from the domestic market.

The additional investment was expected to increase production capacity of pig iron from 550,000 tons a year at present to 1.1 million tons a year in 2014.(*)