Krakatau to join Australian project
Krakatau to join Australian project
ADELAIDE (Reuters): The South Australian Steel and Energy
Project (SASE) will involve Ausmelt Ltd, Meekatharra Minerals Ltd
and two Indonesian companies, the state-owned PT Krakatau Steel
and privately-owned PT Maritosa and Coalindo.
Mines Minister Rob Kerin said yesterday while Krakatau
remained fully committed to the project, Maritosa was
reconsidering its position in the fall-out of the Asian economic
crisis.
"They are not really in a position just at the moment to make
an absolute out and out commitment that they will be in it right
down the line," he said, adding the company would not be involved
in the demonstration plant phase.
A A$15 million demonstration plant for the proposed US$500
million South Australian pig iron export project was expected to
be completed within a year.
Premier John Olsen said a A$6.5 million Federal research and
development grant would enable the plant to be constructed at
Whyalla, in the state's north, without delay.
Olsen said the project would be aimed at the Asian market,
despite the projected stalling in regional growth over the next
two to three years.
"Most people are forecasting a pickup in growth in future:
that means a requirement for steel, therefore we can supply that
out of outback South Australia," he said.
Kerin said the proposed A$1 billion Alice Springs to Darwin
rail link would make a great difference to the bottom line
calculations for the SASE project, although how much difference
would have to be assessed by a future feasibility study.
"The railway link is very important to this project because it
changes the sums," he said.
Kerin said construction of the demonstration plant, capable of
producing two tons of pig iron an hour, would begin in about six
months and was expected to be completed by the end of 1998.
SASE has estimated the project, which would exploit Ausmelt
technology and Meekatharra's coal and iron ore reserves, would
produce up to 2.5 million tons of pig iron each year.