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112 [[newspaper clipping]] SEPT 3: 92 POST Krakatau Steel plans to increase exports JAKARTA (JP): State-owned PT Krakatau Steel, the country's largest steel producer, is stepping up its export drive to developing countries. Company President Tungki Ariwibowo said Krakatau Steel had recently carried out an intensive study on the market potentials in developing countries "and the result is very promising." He said that Krakatau Steel was optimistic it would be able to tap to growing market opportunities in developing countries. "Our steel is very competitive and we are also able to produce specific products to suit their needs," Tungki said. Tungki, who is also the junior minister of industry, said the demand for steel sheets in developing countries was increasing in line with the rapid pace of their industrialization programs. Vietnam, one of the new buyers among the developing nations, recently made an initial order to import around 3,000 tons of cold rolling coils from Krakatau Steel. "The order is relatively small as compared to those made by Japan, Malaysia, and Thailand but it constitutes an important breakthrough in the company's market diversification program," he said. Tungki said Krakatau Steel sold the steel sheets to Vietnam at US$400 per ton, not including shipping costs. The export to Vietnam was handled by an international trading house. Soetoro Mangoensoewargo, the company's operational director, said Krakatau Steel produced around 3.1 tons of steel products a year and around 20 percent to 25 percent of the total production was exported to Japan, the Middle East, Britain, China and other Southeast Asian countries. (hen) 113 [[newspaper clipping]] Oct 14, Post Gresik copper project gets greenlight JAKARTA (JP): Cabinet ministers are supporting the plan for Germany's Metallgesellschaft AG to construct a copper smelter and refinery in Gresik, East Java, a visiting company executive says. "We are very much encouraged by the government's support of our project, which will be the biggest of its kind in the country, with the total investment around US$600 million," Heinz Schimmelbusch, Chairman of Metallgesellschaft AG told The Jakarta Post here yesterday. Schimmelbusch said the essential support was expressed by Coordinating Minister for Economic, Financial and Industrial Affairs Radius Prawiro, Minister of Finance J.B. Sumarlin, Minister of Mines and Energy Ginandjar Kartasasmita, Minister of Industry Hararto, and Junior Minister of Trade Soedradjad Djiwandono during his meeting with them. Schimmelbusch was also scheduled to meet with Minister of Population and Environment Emil Salim last night to present the company's construction plan and the explain the environmental protection aspects of the project. "We expect the govrnment to approve the plan in January and we will start with the construction in August 1993," Schimmelbusch said. The project to be completed in 1996, will be constructed by Lurgi AG company, a wholly-owned subsidiary of Metallgesellschaft. Lurgi has worked on many major projects here, including the giant olefin plant now under construction in West Java. The Copper smelter will be jointly owned by Metallgesellschaft Group (55 percent), Freeport Indonesia Inc. (20 percent), Nippon Mining Company Ltd. (25 percent), and Indonesian shareholders (five percent). PT Freeport Indonesia, a subsidiary of the New Orleans-based Freeport-McMoran Copper & Gold Inc., has a giant copper and gold mining operation in Irian Jaya. It plans to increase its production capacity up to 90,000 metric tons of ore per day. Schimmelbusch told reporters here yesterday the copper plant, to be located near the Petrokimia Gresik complex, would be designed to produce 150,000 tons of refined copper a year. "We expect a supply of sulfuric acid from Petrokimia Gresik for the smelter," he said. Gresik is close to the major port, Tanjung Perak, in Surabaya, which will facilitate shipment. "We will try to increase the production capacity in the future, because Indonesia has abundant deposits of copper," he said. Freeport Indonesia, one of the world's largest copper mining firms, will supply copper concentrate to the smelter. Schimmelbusch estimated around $150 million of the investment would be financed by the State Development Bank of Germany. He said the project would be able to generate some $60 million in earnings a year for Indonesia. (fhp) Where to look: National: p. 2 City: p. 3 Opi [[Opinion]] p. 4
