BHP proceeds with Gag island nickel project<\/p>\n
JAKARTA (JP): Nickel company BHP Asia Pacific Nickel Pte Ltd,
\na subsidiary of Australia's Broken Hill Proprietary (BHP), is
\nproceeding with its plan to develop nickel deposits on Gag
\nIsland, Irian Jaya, despite the country's dire economic straits.<\/p>\n
BHP Indonesia president Harriet Richards told The Jakarta Post
\non Monday that the company, in a partnership with publicly listed
\ngeneral mining company PT Aneka Tambang, was exploring for more
\nnickel deposits and carrying out feasibility studies on Gag and
\nadjacent islands.<\/p>\n
"The feasibility study include studies of the environment and
\nthe social lives of several tribes in the area," she said on the
\nsidelines of the ceremony to award two contracts of work (COW) to
\nthe company's subsidiaries for the development of coal deposits
\nin East Kalimantan and Central Kalimantan.<\/p>\n
"The study may take two years."<\/p>\n
BHP has a 90 percent share in the Gag project, with the
\nremaining shares held by Aneka Tambang.<\/p>\n
She said BHP and Aneka Tambang were developing new technology
\nin BHP's research and development office in San Francisco. It was
\nexpected to enable them to process nickel ore on the islands at a
\nminimum cost amid growing competition among the world's nickel
\nproducers.<\/p>\n
She said the company was conducting trials of the technology
\non the island to determine its capability, as well as its social
\nand environmental impacts on Gag and surrounding areas.<\/p>\n
"There are still many technical issues to be studied before we
\napply the technology."<\/p>\n
She added that both firms invested "a huge amount of money" to
\ndevelop the technology.<\/p>\n
Aneka Tambang's president Dedy Aditya Sumanegara said last
\nyear Gag and the adjacent islands were believed to contain 190
\nmillion tons of nickel, making it the world's third largest
\nnickel deposit, and a significant amount of cobalt.<\/p>\n
Aneka Tambang and BHP planned to produce 40,000 tons nickel
\nand 3,600 tons of cobalt per year, he said.<\/p>\n
Richards said the results of the exploration carried out by
\nthe company showed the islands may contain "larger deposits of
\nnickel than the initial estimation".<\/p>\n
Richards said the Gag nickel project may become "a
\nsignificantly large nickel mine" lasting up to 25 years.<\/p>\n
BHP has been operating in Indonesia for 25 years in various
\nsectors, including mining, steel, information technology and
\ntransportation.<\/p>\n
Its subsidiaries, PT Pari Coal and PT Sumber Barito Coal, were
\nawarded on Monday two COWs for the development of coal deposit on
\nrespectively a 98,910-hectare contract area in East Kalimantan
\nand 100,300-hectare contract area in Central Kalimantan. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bhp-proceeds-with-gag-island-nickel-project-1447893297",
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"sponsor": "Okusi Associates",
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