Pradeep Koneru’s Trimex Sands, signs MoU with Government of Indonesia to establish an integrated titanium industrial complex
- Trimex Group to invest 800-850 million USD towards setting up the project in three phases.
- Project to boost economic sustainability in the region and create 6,500 jobs.
- Project to reduce Indonesia’s dependency on imports for titanium dioxide pigment.
New Delhi, January 25, 2011: Trimex Sands, a part of the Trimex Group, a leading international conglomerate with a focus on heavy minerals, announced that it has signed a Memorandum of Understanding with the Republic of Indonesia, in New Delhi, India today.
As per the details of the MoU, Trimex Sands will set up a world-class integrated titanium complex, leveraging heavy mineral resources in Indonesia. The project’s site will be determined in accordance with the location of titanium resources in the country, and will enable the authorities to advance lesser-developed regions of Indonesia. The estimated cost for the Integrated Titanium Complex is 800-850 million USD, which will be invested in three phases, over the next 10 years.
The project will consist of mining and mineral separation, value addition of ilmenite to titanium slag, TiO2 pigment and Ti Metal production of other associated viable minerals from the resource area. The manufactured products will primarily be used for commercial sales and domestic consumption.
His Excellency Mr. M. S. Hidayat, Minister of Industry, Republic of Indonesia, said, “This Memorandum of Understanding with Trimex Sands is a result of mutual commitment to develop and implement the utilization of the natural resources in the region and promote industrialization, in order to bring prosperity and well-being to the people. Indonesia has large ilmenite resources, about 40 million tons, despite which the country annually imports about 46,000 tons of TiO2 pigment. The proposed integrated TiO2 project will ensure regular and committed supply of pigment to end users at a cost effective price. This will also reduce our dependence on imported pigment”.
“We welcome Trimex Sands new investment to Indonesia and are determined to provide all required support to the group. They have shown commitment as an investor in executing similar large-scale projects in different parts of the world. We are confident that their expertise and experience in this sector will help in utilizing the available natural resources in the country and create new industrial opportunities. We firmly believe that the proposed Integrated Titanium Complex will change the landscape of the heavy mineral industry in Indonesia. Mr. Hidayat further added.
The company expects the first phase of the project to start by Sept 2011 and end by Dec 2013. The first phase will see an investment of 150-200 million USD in the production of titanium-di-oxide (TiO2) pigment which is largely used in developing industries like paint, ceramics, paper and plastics. The project is expected to create close to 1,000 new jobs during this phase.
The second phase of development will include production of titanium slag. In the third phase, Trimex would concentrate on production of titanium metal and enhancing the TiO2 pigment plant capacity. The second and the third phase of the project would entail investments of close to 350 million USD and 300-350 million USD, respectively. The entire project is expected to be completed in 8 to 10 years.
Mr. Pradeep Koneru, Executive Director & CEO of Trimex Sands, said “Our experience in Indonesia for past eight years has been very rewarding. The proposed integrated TiO2 project is a very important project for Trimex Group as we aim to become the largest player in titanium feed stock industries and establish ourselves as a fully integrated titanium producer in the Asia. This MoU marks the beginning of Trimex Sands’ long-term strategic relationship with the government and the people of Indonesia”.
Regarding the project and the mineral separation capacity, Mr. Pradeep Koneru further added that “Trimex Sands will look for titanium and zircon-rich deposits and high-grade titanium feed stock deposits. There are large untapped resources in Indonesia and we are upbeat about the project tapping into these resources. The production capacity of the plant will depend on variable factors like raw materials, infrastructure for power, water, as well as road and rail links”.
According to Mr. Koneru, the project is expected to create direct employment for close to 2,000 people and indirect employment for nearly 4,500 people.
Trimex has been operating in Indonesia for over eight years, including a kaolin plant in Bangka Belitung and a large greenfield coalmine in East Kalimantan. The Group has a keen understanding of the Indonesian marketand has been committed to improve the quality of life and ensure sustainable practices through the implementation of long-term programs in Indonesia. To that end, the company has undertaken various holistic development programs for the residents of 15 villages in East Kutai in East Kalimantan.