Indonesia, S.Korea's POSCO discuss steel project

Indonesian, S Korean firms to commence construction of joint steel plant. Indonesian government-run steel producer firm Krakatau Steel and South Korean steel firm Pohang Steel and Iron Company (Posco) would commence the construction of a jointly-operated steel plant in Indonesia that would have production capacity of 5 million ton per year, an Indonesian senior official said here on Tuesday. "Posco and Krakatau Steel have reported their intention to construct the steel plant with production capacity of 5 million ton per year. The construction will be divided in two phases. The initial phase would have equal capacity of 2.5 ton with the second phase. They have allocated 5 billion U.S. dollars to finance the construction that is expected to be completed in 2014," Metal, Machinery, Textile Industry Director General at the Industrial Ministry, Anshari Bukhari, said. Anshari said that if everything is in place, the plant construction would begin in October this year. He said that top officials of both firms were scheduled on Tuesday to visit the ministry to convey the plant construction plan to the minister. In the cooperation, Anshari said that the Krakatau Steel provides the plant site area, meanwhile Posco provides the funds to construct the plant. "The feasibility study is underway at the moment. Posco's president director will observe the site in October and the MoU signing is scheduled in November this year," Anshari was quoted by the detik.com as saying. Indonesian government will provide full supports in the project that consists of speeding up the project environment auditing process, quickens the permit procedures and easing the plant to obtain sufficient raw materials and possibly tax incentive, he added.