Upon signing the Equipment Supply and Delivery or Procurement contract on October 12, 2019, PT Ceria Nugraha Indotama (PT CNI) has signed a tri-parted ‘Erection, Construction, Installation and Commissioning Services’ contract on Friday October 18, 2019 at The Dharmawangsa hotel, Jakarta, Indonesia. The three parties namely PT CNI, Construction Representative Office (BUJKA) of China ENFI Engineering Corporation (ENFI) and PT PP (Persero) Tbk (PP). ENFI and PP have formed a Consortium PP-ENFI to work together as EPC contractors to build PT CNI’s RKEF Smelter Project in Wolo, Kolaka, Southeast Sulawesi, Indonesia.
Representing PT CNI for the signing ceremony was Mr. Derian Sakmiwata, President Director, while Consortium PP-ENFI were represented by Mr. Abdul Haris Tatang, Director Operation III and Mr. Wang Hong-Zang, Vice General Manager International Department, of PP and ENFI, respectively. This agreement is the succession to the Procurement Contract and final part of the Engineering, Procurement and Construction (EPC) agreement between the parties. The signing ceremony was the result of all parties’ determination, diligent and constructive round of negotiations, which involved travels between Jakarta and Beijing, that preceded it.
The agreement covers the construction and installation of all 3 phases or 4 production lines of Rotary Kiln Electrical Furnace (RKEF) of nickel processing and refining facilities. The total project capital investment of 4 x 72MVA lines of RKEF is IDR 14.5 trillion.
The RKEF smelter project is the first project of rectangular RKEF smelter technology in Indonesia. Consortium PP-ENFI will construct and lead the commissioning to achieve a fully-functioning 4-line 72MVA RKEF. Once fully built the smelter will have a feed capacity of 5,000,000 tons per year of nickel ore to produce 230,000 tons per year of ferronickel, containing 22% nickel metal or equivalent to 50,600 tons per year of nickel. Construction of the project is expected to complete in 2021 and will reach its full capacity by 2022.