NISCO focuses on exploration of iron-rich sand in Indonesia

Jiangsu-based Chinese steelmaker Nanjing Iron and Steel United Co. (NISCO) has announced that on October 20 it inked a cooperation agreement for exploration of iron-rich sand with Indonesia-based PT Bumi Makmur Sejahtera, with plans to produce iron-rich sand in Indonesia in Q1 2012.
 
The related mining area is located in the south of Sukabumi, in West Java, Indonesia. PT. Bumi Makmur Sejahtera obtained a production permit covering an area of 4,800 hectares offshore and 55.16 hectares on land in April this year.
 
Accordingly, NISCO and PT Bumi Makmur Sejahtera plan to build a joint venture company with each party holding a 50 percent stake, focused on exploration of iron-rich sand in Indonesia. At the same time, they plan to build a smelting plant or a pelletizing plant.