JAKARTA: China Anhui Conch Cement Company Ltd is poised to invest in the construction of four cement plants in South Kalimantan, East Kalimantan, West Kalimantan and West Papua worth US$2.35 billion.All those plants will have production capacity of 36,400 tons of clinker per day.Ministry of Industry along with a Chinese consortium comprising Anhui Conch Cement, Prosperity Materials (Internasional) Ltd, and The State-owned Assets Supervision and Administration Commission (SASAC) of Anhui province has signed memorandum of understanding (MoU) to develop national cement industry, Director of Basic Chemical Industry at Directorate General of Manufacturing Industry Basis Toeti Rahajoe said.The company will invest in four provinces in Tanjung, South Kalimantan, with capacity of 6,400 tons clinker per day, which is equipped with cement grinding plant, port, and 60 MW + 1x12 MW power plant along with production and supporting facility. According to him, the investment in cement plant development reaches to US$400 million.Anhui Conch Cement will disburse US$250 million as initial investment in Tanjung , he said today.The company that currently employs 45,000 workers will build plant in Tanah Grogot (Paser), Sepinang, East Kalimantan Timur. Such plant with investment value reaching to US$600 million will have production capacity of 10.000 tons clinker per day equipped with cement grinding plant, port, and 60 MW + 1x12 MW power plant along with production facility and other supporting facility.Anhui Conch Cement will also build cement plant in Pontianak, West Kalimantan, with investment of US$600 million, which is going to be designed and equipped with facilities similar to cement plant in East Kalimantan. The company is also investing US$750 million in West Papua although it will have the same capacity and supporting facility with the two plants in Kalimantan.Feasibility studyThe company is committed to conduct feasibility study immediately after signing the MoU, Minister of Minister M.S. Hidayat said.Such study to assess the project technical and economical capability will be conducted together with Prosperity Materials and its expected to complete this year.Ministry of Industry will fully support the submission of this business proposal to Indonesia Investment Coordinating Board (BKPM). The government is committed to facilitate approval letter, recommendation and permit associated with mining, processing activity, development of industry, areas and other things needed for cement projects, he added.The government has set cement industry to receive incentive based on Government Regulation No 62/2008. Ministry of Industry is expecting the four cement plants to start operating this year since the Eastern Indonesia needs additional supply in line with the Master plan for Acceleration and Expansion of Indonesia Economic Development.The operation should start this year since the existence of a cement plant in Eastern Indonesia is highly expected. Besides, the growth of national cement consumption reaches 7%-10%. Such consumption could reach 55 million tons in 2015 and 100 million in more than 10 years, he said.Currently, there are nine national cement producers with production capacity of 52 million tons spread across Java, Sumatra, Kalimantan, Sulawesi and Nusa Tenggara, yet, the plant utility is still around 72% or only producing 37.8 tons per year from the industry needs at 40,7 million tons per year. (T06/NOM)
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