Operations Director Henry Yulianto stated to Antara here on Tuesday, that the SILO Group has completed the construction work of its first dry iron ore smelting plant worth US$50-60 million.
In line with the implementation of the Law Number 4 of 2009, the SILO Group will build its second iron ore smelting plant worth US$300-350 million, he noted.
"The plan is a proof of our commitment to adhere to the government regulation," he claimed.
The implementation of the law, effective January 12, will be a testing time for SILO, as it has stopped exporting iron ore.
He emphasized that he will continually strive to procure an export permit, as the iron ore exported by SILO to China is already processed (crushing/washing/drying), and thus there has been a 10 percent increase in the content rate, from 40-45 percent to 44-50 percent.
Henry forecast that it will take two to three years to build the second smelting plant.
President Susilo Bambang Yudhoyono earlier conducted the groundbreaking ceremony and the commencement of the projects under the Masterplan for the Acceleration and Extension of Indonesian Economic Development (MP3EI) in Kotabaru, South Kalimantan, worth Rp6.4 trillion.
One of the projects, worth Rp1.2 trillion, is the dry iron ore plant of SILO that is located in the village of Sungai Bali, Sebuku Island.
Reporting by Imam Hanafi
(H-YH/INE)
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Editor: Suryanto
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