Modern Group eyes 50,000 tons nickel ore export

JAKARTA: PT Modern Group targets to export 50,000 tons nickel ore per month in its first year production through a joint venture with PT Baosteel Resources that has been signed this week.The value of investment cooperation projects reaching to US$6 million with the nickel mining center in Southeast Sulawesi.President Director of PT Modern Group Henri Tan said that the company targeting the exported amount of nickel production as much as 50,000 tons per month as initial step or similar to 600,000 tons in a year.For second year, the exported nickel production reaching to 1 million tons per year or around 100,000 tons per month.Our target this year is not too big due to this is our first year after we diversified our business that normally run in property market, Henri told Bisnis, yesterday.Henri said the nickel production reserve in the mining located in Southeast Sulawesi will remain for 30 to 40 years ahead. According to him, the nickel reserve in the mining is quite large and had not been explored optimally by other mining companies.China marketHe mentioned China as the destination country for the companys export market. Baosteel Resources will also become the main buyer beside other Chinas companies. During the first year of production, the company will focus in the export market before penetrate to the domestic distribution.We will work on domestic market after we build smelter that target to be implemented around 2014, he added.The smelter investment at least needs US$500 million funds for its construction.Besides that, they also seeks adequate new reserve source as the new land alternative aside from the one they currently working on.Therefore, the exploration activity is needed in order to seek potential nickel resources and proper study to build nickel ore processing plant.In long-term, the company also plans to build nickel ore processing plant to make semi-finished goods so that there will be an increase of value added sales prices.In accordance with the local development plan by the Governor of Southeast Sulawesi, the construction plan of nickel ore processing plant is expected to be able to accommodate the mining output from the local mining.Thus, Southeast Sulawesi is expected to become an integrated and unified mining estate.The joint venture is also expected to be able to absorb labor force, reducing unemployment and improve local people prosperity.Modern Group is a national company engages in distribution, retail and property that will begin to develop its investment to industrial sector of natural resources and minerals this year. (t06/wiw)