State-owned mining company PT Aneka Tambang (Antam) has said it will build a nickel smelter and stainless steel plant this year, in cooperation with Jindal Stainless Ltd from India, Asia Pulse reported.
Antam and Jindal are still conducting a feasibility study on the $700 million project to be built in Kendari, Southeast Sulawesi, Antam president Alwin Syah Lubis told the newspaper Investor Daily.
Antam will have a 55% share and Jindal a 45% share in the project, which is to have a capacity to produce 20,000 tons of ferronickel and 250,000 tons of stainless steel a year.
Jindal started business in the stainless steel industry in the country four years ago, when it acquired Maspion Stainless Steel in Gresik, East Java. It already has a production capacity of 50,000 tons of stainless steel in Indonesia.