The government, through the Industry Ministry, has approved the expansion plan for a nickel industrial estate in Konawe, Southeast Sulawesi, and plans to issue the permit in the near future.
The ministry’s Directorate General of Development for Industrial Areas, Imam Haryono, said the government would soon grant an additional license to Chinese nickel company PT Virtue Dragon Nickel Industry to start the third phase development in the industrial park.
“We just have to wait for the company’s application letter for the permit to the Agrarian and Spatial Ministry,” he said in Jakarta on Thursday, as quoted by Kontan.
The company currently owns licenses for two phases of nickel industry development. The first phase consists of 500 hectares with US$1 billion in investment value, while the second one consists of 700 hectares with $2.5 billion in investment value.
With the coming new permit to manage up to 2,200 hectares of land, Imam explained, the company proposed expanding its area by an additional 1,000 hectares to be used for building Virtu Dragon Industrial Park.
He added that his ministry was now coordinating with the Agriculture Ministry for the substitute land because the company’s expansion would grab several hectares of land owned by the Agriculture Ministry.