Insider Stories - A number of mining companies are ready to build a smelter as a response to the implementation of the Law Number 4 of 2009, which requires the mining companies in Indonesia to build smelters in the country. The ban on raw mineral export prevailing since January 12, 2014.
One of the major mining companies in the country, PT Freeport Indonesia said they will comply to the law but the study is still on-going in order to determine the best location for it.

Freeport spokesperson, Daisy Primayanti said, three proposed locations that are still being evaluated are Gresik, East Java and Timika in Papua.

According to Minister of Industry, MS Hidayat, Chinese steel metallurgy company, Fuhai Group Limited, plans to invest at least US$10 billion up to $30 million to build smelter in  in Lampung or Sukabumi.

At first, Fuhai would invest to construct steel industrial area, including upstream and downstream business unit ranging from building factory, port, road, and power plant. It is also dealing with permit to construct port.

Hidayat said, many Chinese companies are planning to build smelter in the country like Chinese aluminum company, Shandong Nanshan Aluminium Co. Ltd, is ready to  groundbreaking of smelter to process bauxite to alumina in April 2014.

Others, PT Polowijo Gosari, dealing in limestone mining, production of dolomite fertilizer, and agribusiness, will also invest in smelter to process sulfate acid around its factory in Gresik, East Java, with total investment reaches $100 million. The company will conduct dolomite calcinations, build smelter to process sulfate acid, and factory to produce kieserite fertilizer.

The iron ore mining company, PT Sebuku Iron Lateritic Ores (SILO), in Kotabaru, South Kalimantan, also plans to build its second dry iron ore smelting plant worth $350 million.

Operations Director Henry Yulianto explaines that the Group has completed the construction work of its first dry iron ore smelting plant worth $60 million.

In line with the implementation of the Law Number 4 of 2009, SILO will build its second iron ore smelting plant worth US$350 million.

Meanwhile, Governor of Central Sulawesi Longki Djanggola urged nickel miners in the region to establish a consortium, as cited by Antara news agency. He and four other governors of nickel producing regions in eastern Indonesia, namely South Sulawesi, Southeast Sulawesi, North Maluku and Papua, have been urging the central government to implement Mining Law consequently and strictly as of January 12, 2014.

He said local governments in both provincial and district level will help monitoring the implementation of the Law and facilitating miners to carry out the provisions of such Law.

Central Sulawesi is one fairly large nickel producing regions in Indonesia with approximately 300 holders of IUP, making crude nickel (ore) as the largest foreign exchange earner for the province in recent years.

Based on a data from Statistic Indonesia, the Central Sulawesi’s exports earned foreign exchange of $268.44 million throughout January-November 2013, in which 80% came from mining commodities like metal ore, slag and ashes.