From GOI

Krakatau Steel in Talks on $450m Factory

State-owned steel maker, PT Krakatau Steel, said it will hold talks with a Saudi Arabian company on plans to build a $450 million steel factory in South Kalimantan, Antara reported on Wednesday (22/11/06).

Krakatau Steel president Daenulhay said the country's largest steel factory will start negotiations with Al Tuwairqi early next month, after failing to select a strategic partner from among 12 bidders. None of the 12 bidders met Krakatau Steelís expectations, with several of them lacking mining experience.
Daenulhay said the Saudi Arabian company is one of many investors interested in building a pellet factory in iron ore-rich South Kalimantan. He said Al Tuwairqi wants a majority stake in the project if a deal is clinched.

Based on plans, construction of the factory will start next year after general exploration is completed by the end of this year, he added.
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