Dayaindo to finalize FS on nickel smelter in Q1, 2012

IDX-listed coal and nickel company PT Dayaindo Resources International Tbk is scheduled to complete a feasibility study on the development of nickel smelter plant in Central Sulawesi in the first quarter of next year.

President Director Sudiro Andi Wiguno said that the firm has so far finalized the land acquisition and environmental impact analysis (Amdal) process, leaving only the feasibility study to complete. Once completed, the company would only need to secure a loan for the project which requires around US$ 80 million of investment.

?Our equity source (internal funding) is ready, but we still wait for the loan which will be available once we finalize the feasibility study. We?re trying to complete it in the first quarter 2012,? said Sudiro.

Dayaindo Resources is teaming up with a Chinese company, CQ Resources, in the construction of the smelter in Banggai, Central Sulawesi. The end product from the smelter is expected to be exported to China.

This nickel processing facility is designed with a 1 million tons capacity and set to begin operation in 2013.

The firm expects ore nickel production next year, through subsidiary PT Anugerah Tompira Nikel (ATN), to reach 1 to 1.2 million tons. Dayaindo mines in 350 ha of area within its concession of 1,240 ha in the province, which has an estimated total reserve of 29 million tons. (giok)