"The operation of PT MJIS is part of pt KS`s (Krakatau Steel) efforts to increase efficiency especially to reduce its dependency on imported raw materials," PT Krakatau Steel`s corporate secretary Andi Firdaus said here on Wednesday.
The operation of PT MJIS is expected to save production cost significantly in PT KS, he added.
PT MJIS produces iron sponge which is to be processed into steel raw materials at PT Krakatau Steel`s plant in Cilegon, West Java.
PT KS holds 66 percent of shares in PT MJIS while the rest is held by PT Antam.
According to plans the plant is scheduled to operate normally at the end of 2013 with the rate of production reaching 315,000 tons a year.
"Iron sponge from PT MJIS will also be very useful for PT KS to reduce risks of exchange rate fluctuation and supply delay," Andi said.
President director of PT MJIS, Anwar Ibrahin, is optimistic his company could meet KS`s needs of raw materials.
In March the company delivered its first shipment of 5,000 metric tons of iron sponge to PT KS.
"PT MJIS`s plant in Batulicin, South Kalimantan, has met three main criteria namely iron ore supply, coal supply and access to transport its product to Cilegon," Anwar said.
According to him PT MJIS processed local iron ore into iron sponge as an alternative raw materials for steel making at PT KS.
(G001/H-YH)
Editor: Jafar M Sidik
Copyright © ANTARA 2013
