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IDR 6 Trillion Nickel Smelter Build by Chinese Investors in Tanah Bumbu Special Economic Zone

Mon 25 Jul 2022, 07:02 AM



PT Anugerah Barokah Cakrawala (ABC) laid the first stone for the construction of a nickel smelter in the Special Economic Zone (SEZ) of Sungai Dua Village, Tanah Bumbu Regency. The smelter, which stands on an area of ​​329 hectares, belongs to the Jhonlin Group in collaboration with investors from China.

"This downstreaming needs to be implemented immediately considering the added value that will be provided, especially for the economy, will increase," said the Governor of South Kalimantan H. Sahbirin Noor in his statement, Monday, July 25, 2022.

Sahbirin said the government supports mineral downstreaming. 
The downstream program is believed to be able to accelerate development in the midst of domestic industrial development. The inauguration of the smelter was marked by the press of a button by the owner of PT Jhonlin Group , Andi Syamsuddin Arsyad, accompanied by Sahbirin Noor, CNGR Advanced Material Co. Ltd. Teng Wei Ming, and Chairman Of Walsin Lihwa Coorporation Mr. Yu Lon Chiao. The construction of the smelter is in the same area as the biodiesel factory owned by PT Jhonlin Agro Raya (JAR) which was inaugurated by President Joko Widodo on October 21, 2021.

Sahbirin Noor said that the Jhonlin Group synergizes with PT CNGR from China. 
According to him, the smelter plant will improve the economy of South Kalimantan. He also said that the construction of the ABC smelter is an implementation of Law No. 4 of 2009. This development is claimed to be a form of participation in the implementation of Ministerial Regulation No. 7 of 2012, which confirms that starting 2014, exports of raw materials are no longer allowed.

"This must then be addressed with the development of the processing industry which will certainly open up economic opportunities for the region," said Sahbirin. 

Sahbirin hopes that the industrial area in Tanah Bumbu Regency can become an integrated industrial area while still paying attention to environmental sustainability and local community participation through empowering the potential of human resources in the region. 
"Hopefully this development can provide great benefits for improving the welfare of the people of South Kalimantan, especially in the Tanah Bumbu district," he said.

CNGR Advanced Materials Co. 
Ltd., Teng Wei Ming, said the groundbreaking of the smelter was an important step for the company. The company plans to realize the investment in several stages. Currently, the company will build four low grade nickel matte production lines with a production capacity of 40 thousand tons.

"In the future, according to market and customer needs, we plan to build high grade nickel matte, nickel sulfide, ternary precursors and battery recycling as well as build an integrated industrial layout from upstream to downstream," said Teng Wei Ming.

The CEO of Jhonlin Group, Ghimoyo, said that this nickel smelter will empower local workers or residents of Tanah Bumbu Regency. 
According to him, the nickel smelter can absorb around 1,200 workers.

He said that the raw material or 
nickel ore was imported from within the country and some of it was sent from abroad. Nickel ore will also be processed into batteries. "The investment is approximately IDR 6 trillion and the construction is targeted to be completed in the next 12 to 18 months," said Ghimoyo. 



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