Tue, 26 Jul 2011

Kotabaru, South Kalimantan (ANTARA News) - Chinese state-owned company Dafeng Port Group plans to set up a ferronickel industry in Kotabaru, South Kalimantan with a production capacity of 200 million metric tons a year.

The president director of Dafeng Port Group Co. Ltd., Ni Xiangrong, said here on Saturday the Dafeng Port Group Co.Ltd. has successfully developed an integrated economic zone in China and plan to build a ferronickel industry and its support industries in Kotabaru.

"Why it is Kotabaru. It is because Kotabaru is relatively conducive and rich of natural resources and has quite good infrastructure," he said.

Besides a ferronickel industry Dafeng Port Croup Co.Ltd. also plans to build a coal-powered electricity plant with a capacity of 150 megawatt.

The company also plans to build a vocational school to prepare skilled workers, workshops and other supporting industries.

"At the initial stage Dafeng Port Co. Ltd. will invest around US$240 billion," he said.

He said he had already conducted coordination with the local administration with regard to license and other administrative requirements.

He said he was glad he had received a serious response from Kotabaru district head Irham Ridjani who had said he was ready to cooperate with and support Dafeng Port Group with regard to the plan.

He said Dafeng Group would cooperate with local partner PT Sebuku Iron Lateritic Ores (SILO) with regard to nickel raw materials and coal fuel supply and other supporting facilities.

PT Sebuku Iron Lateritic Ores` operations manager Hendrik said all Dafeng Group`s plans would be realized if PT SILO`s plan to build a coke and other industries in Kotabaru is completed.

"Right now PT SILO is still dealing with an intervention lawsuit from the Kotabaru administration in connection with PT Arutmin`s lawsuit against a mining permit in Laut Island," he said.

PT SILO is still waiting for the ruling of the Supreme Court over the case..

"Hopefully it will come soon and the Kotabaru administration wins so that PT SILO`s plan to build a bridge and an industry in Kotabaru could immediately realized," he said.