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Jakarta 22-10-2008
Kartika Selabumi Mining Group Signed US$ 50 Million JV with Zhejiang Hua Guang

PT Kartika Selabumi Mining (KSM) Group of companies has signed a joint venture with Zhejiang Hua Guang Smelting Group Ltd of China to invest in a nickel smelting and coke project in Konawe, Southeast Sulawesi .

Established in 1990, KSM has coal mining concessions in Kutai Kartanegara, East Kalimantan . Zhejiang Hua Guang Smelting, located in Shandong and Shanxi , is the second largest nickel smelting group in China with production of over 750,000 tons.

In a signing ceremony in Jakarta on Wednesday (January 23,2008), the President Commissioner of KSM, Kiki Syahnakri, explained that Zhejiang Hua Guang has over extensive research, came up with the technology that allow the process low grade nickel below 0.8%. In traditional smelters, the nickel content should at least be 2% to make it economically feasible. The technology makes it possible to save up to 30% in energy cost by not using electricity and pollution free.

The President Director of KSM, Michael Tjahjadi, informed that his company will own a 51% share in the project and Zhejiang with 49%.

The US$ 50 million nickel smelting project is expected to have a production capacity of 3,500 tons of ferronickel and 200,000 tons of coke annually. The project is scheduled to commence construction in 2009 and operate by 2012. Michael added that the maximum ferronickel capacity is expected to reach 10,000 tons within the following years.

Michael said that KSM owns nickel mining concession areas in Southeast and Central Sulawesi as well as the Island of Halmahera . "We are still in the exploration phase and the reserve has yet to be determined. However the estimate is over 100 million tons in Sulawesi and 10 million tons in Halmahera ," he said.

In his address, the Director General of Metal, Machine, Textile and Various Industries of the Industry Ministry, Ansari Bukhari, said that the project has the government's full support and invited other similar investments into the country.

He explained that Indonesia has promising potential for nickel smelting. Indonesia is home to an estimated 3.2 billion tons of ore, which accounts for approximately 5% of the world nickel reserve.

In a signing ceremony in Jakarta on Wednesday (January 23,2008),the President Commissioner of KSM, Kiki Syahnakri, explained that Zhejiang Hua Guang has over extensive researcht economically
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