THE GOVERNMENT through the Coordinating Ministry for Maritime Affairs and Investment (Kemenkomarves) continues to accelerate the downstream of Nickel through the acceleration of the National Strategic Project (PSN) launched by President Joko Widodo.
This step is a manifestation of the government’s commitment to increase the competitiveness of the national industry at the world level and to increase the added value of the nickel commodity. One of them is accelerating National Strategic Projects through the construction of a nickel smelter in Sulawesi.
This is because Sulawesi is the epicentre of nickel in Indonesia. Based on the mapping of the Geological Agency in July 2020, Indonesia has nickel ore resources of 11,887 million tonnes (inferred 5,094 million tonnes, indicated 5,094 million tonnes, measured 2,626 tonnes, hypothetical 228 million tonnes) and ore reserves of 4,346 million tonnes (proven 3,360 million tonnes and probably 986 million tonnes). Meanwhile, the total metal resources reached 174 million tons and 68 million tons of metal reserves.
Assistant Deputy for Investment and Mining Coordination, the Ministry for Maritime Affairs and Investment, Tubagus Nugraha said, to accelerate the realization of the PSN, the government provides various licensing facilities, both issued by the central and regional governments, which have the authority in accordance with the provisions of laws and regulations.
“PSN aims to increase the competitiveness of Indonesia’s economy, increase the competitiveness of the industrial and service sectors as part of increasing the value of natural resources and providing employment, improving Indonesia’s current account deficit, reducing imports and Indonesia’s trade balance deficit and increasing exports abroad through industrialization, Domestic Investment and Foreign Direct Investment (FDI), coordinate in inviting, disseminating and assisting the investment process in Indonesia, providing priority of Industrial Area (KI) outside Java,” said Tubagus.
To accelerate the downstream of nickel through the PSN, Kemenkomarves is directly reviewing the readiness of a number of smelters in Sulawesi that are included in the PSN, including; Indonesia Morowali Industrial Park (IMIP) in Morowali, Virtue Dragon Nickel Industry (VDNI) in Konawe and PT Ceria Nugraha Indotama (CNI) in Kolaka Regency, Southeast Sulawesi.
Tubagus appreciated the seriousness of PT. CNI in building a smelter to strengthen the nickel downstream industry.
“As a Domestic Investment company (PMDN), Indonesia should be proud of PT CNI’s strategic steps. We will support so that the PSN is succeeded,” he said at the PT Ceria Nugraha Indotama Smelter Development Debottlenecking meeting in Kolaka, Southeast Sulawesi yesterday.
According to Tubagus, Kolaka Regency is one of Indonesia’s nickel barns. Therefore, by making the smelter of PT CNI as PSN, nickel downstream will generate added value and accelerate the regional and national economy.
“And the most important thing is to create jobs. We estimate, if the smelter of PT. CNI operates it will absorb a workforce of more than 4,000 workers,” he added.
“The main things that must be accelerated are Building Use Rights (HGB) permits, electrical energy support and smelter construction plans,” he added.
Meanwhile, Deputy Director of PT CNI, Djen Rizal explained that as PMDN, his party is fully committed to the nickel and cobalt downstream program to support the electric car industry.
For production, the plan is [to produce] 252,000 tons per year of Ferronickel (FeNi) at 22 percent Ni. The total electric power required is 350 MW from PLN. The plant life from the mine ore supply of PT CNI itself is estimated to be sufficient for more than 20 years of operation (based on current resources and reserves from the supply of nickel ore which is mined independently in CNI WIUP)
“The required electricity capacity is 350 MW and the plant life is estimated to reach more than 20 years of operation,” he explained.
To support the supply of electrical energy, PT PLN supplies electricity through a 350 MW SPJBTL power purchase contract. (Ant / OL-13)