the progress of constructing Iron making plant since it was built at the beginning of April 2009 was 50%. the iron making plant in South Kalimantan will finish at the and of July 2011 and will start to produce the iron.
The iron plant that located in Batulicin, Kabupaten Tanah Bumbu, South Kalimantan would managed by PT Meratus Jaya with shares are majority owned by Krakatau Steel (65 %) and the remainder is owned by PT Aneka Tambang Tbk (Antam). the iron plant targeted production capacity of 315 000 tons of sponge iron every years. The investment value of this plant is around Rp707 billion.
at this time, the national iron and steel demand is projected to approximately 9 million tons per year, in which 5 million tons of met from domestic production and the remaining 4 million tons of imports covered. when the factory was already producing in South Kalimantan, is expected to reduce dependence on imported iron and steel.