Central Omega requires coking coal for planned smelter

By Hiski Darmayana

IDX-listed mineral mining company PT Central Omega Resources Tbk will need about 640,000 tons per year of coking coal to fuel its nickel smelter currently under construction in North Morowali, Central Sulawesi.

The US$300 million smelter will have a capacity to produce 320,000 tons per year of nickel pig iron (NPI), and is expected to start operation at the end of 2016.

?We probably import the coking coal from China because there is no coking coal producer at home yet,? said company Director Ciho Darmawan Bangun at a public expose meeting in Jakarta on Tuesday.

Central Omega has suspended its core business nickel mine operation following the introduction of export ban on mineral ores on January 12 by the government. To ensure revenue, the company recently acquired a 75 percent interest in PT Citra Sindo Utama, which holds an IUP permit for iron ore concession in West Singkep, Lingga Regecy, Riau Islands.

Citra Sindo plans to start production of iron ore with concentrate level of 62 percent in June of this year. Production capacity of the company is 325,000 tons per annum. As iron ore concentrate meeting the minimum purity requirement can still be exported until 2017, Citra plans to export its entire output to China.

Editing by Reiner Simanjuntak