Development of Smelter Has Positive Impact on Regional Economy

By : Hariyanto And Aldo Bella Putra | Wednesday, October 18 2017 - 20:30 IWST

Ilustrasi Smelter
Ilustrasi Smelter

INDUSTRY.co.id - Jakarta - Mining observer Fahmi Radhi said the construction of smelters especially in remote areas in eastern Indonesia should be supported because it will provide "multiplier effects" for the economic growth and prosperity of the people in the region.

"For the local government the presence of smelter factory will increase the GRDP significantly," said Fahmi when contacted by media crew Wednesday (18/10/2017)

One of the completed smelters built in Eastern Indonesia is the processing and refining of nickel ore at Obi Island, South Halmahera Regency, North Maluku. This Smelter was built by Harita Group through its subsidiary PT Megah Surya Pertiwi.

According to Fahmi, the development of smelter in the form of nickel processing and refining facilities in Obi Island is not only beneficial for the domestic mining industry, but also provides added value and "multiplier effects" in the form of new jobs, and the emergence of related industries.

MSP itself has completed the construction of a nickel ore smelter processing facility in Obi Island, South Halmahera Regency, North Maluku.

Smelter is targeted to produce up to 200 thousand tons of ferronickel per year with a refining rate of 10-12 percent.

Later, the smelter also received a nickel ore supply from a company holding another Nickel Mining Business License in South Halmahera. The smelter investment reached 350 million US dollars.

The facility adopts Rotary Kiln Electric Furnace (RKEF) technology consisting of three lines to optimize production. MSP smelter power supply is supplied from 3x38 megawatt power plant.

Fahmi said that in accordance with the Minerba Law, mining companies are required to build smelters or processing plants with the aim of not producing raw mines supplied to the market, but already finished products to provide added value to the region and the State. (Ant)

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