PT.

Indoferro
Brian Chan, Sales and Marketing Director

Outlooks on Nickel Smelting & Industries in Indonesia

 DISCLAIMER
The materials used herein and this presentation (collectively, the “Presentation”) have been prepared by Indoferro business development team, solely for use at the
presentation to be made on Sep 2015. By viewing the Presentation, or by reading the materials used at the Presentation, you agree to be bound by the following
limitations:
• The Presentation is strictly confidential and may not be copied, published, distributed or transmitted or disclosed by recipients to third parties.
• The Presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities or
an inducement to enter into any investment activity, nor shall any part or all of the Presentation form the basis of, or be relied on in connection with, any contract or
investment decision in relation to any securities.
• The Presentation is being provided by the Company for informational purposes only and has not been independently verified. Neither the Company nor any of their
respective affiliates makes any representation or warranty, express or implied, as to the fairness, accuracy, correctness or completeness of the information in the
Presentation, and nothing in the Presentation is (or shall be relied upon as) a promise or representation by the Placing Agent or any of its affiliates. The Company and
its affiliates shall have no liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of the Presentation or otherwise arising in
connection with the Presentation.
• The Presentation contains forward-looking statements based on the currently held beliefs and assumptions of the management of the Company, which are expressed
in good faith and, in their opinion, reasonable. Forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the
actual results, financial condition, performance, or achievements of the Company or industry results, to differ materially from the results, financial condition,
performance or achievements expressed or implied by such forward-looking statements. Given these risks, uncertainties and other factors, viewers of the Presentation
are cautioned not to place undue reliance on these forward-looking statements. The Company and its respective affiliates disclaim any obligation to update these
forward-looking statements to reflect future events or developments.
• The Presentation does not constitute a recommendation regarding the securities of the Company. By attending this presentation you acknowledge that you will be
solely responsible for your own assessment of the market and the market position of the Company and that you will conduct your own analysis and be solely
responsible for forming your own view of the potential future performance of the business of the Company.
• Nothing in the Presentation constitutes an offer of securities for sale in the United States or any other jurisdiction, nor does it constitute an invitation by or on behalf of
the Company, any of its affiliates to subscribe for, purchase or sell any securities. Any decision to purchase or subscribe for securities in the possible offering must be
made solely on the basis of the publicly available information about the Company at the time of such offering (the “Public Information”). Any securities to be issued will
not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) and may not be offered or sold: (i) in the United States, unless registered
under the Securities Act or pursuant to an exemption from such registration; or (ii) in any other jurisdiction outside the United States, unless in compliance with all
applicable laws and regulations in that jurisdiction.
•You agree to refer to the Public Information for more complete information about the offering. You should consider the Public Information
before making any investment decision.

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COMPANY INTRODUCTION

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GROWTH STEEL GROUP - PT INDOFERRO

PT Indoferro is a part of
Growth Steel Group,
Which is one of Indonesia’s
Distinguished Business
Group that mainly exposed
PT Growth PT Growth As steel and iron
Sumatra PT Indoferro
Asia Manufacturer, established
Industry
Steel Foundry Construction Nickel Pig Iron In 1969, Medan, North
Steel producer Sumatera
(deformed bars)

Biomass
PT Indocoke
Power Plant
Metallurgical
coke producer

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PHASE 1 – MID GRADE NPI

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BLAST FURNACE
 Product : Nickel Pig Iron

 Capacity: 450 m3

 Ni Content: 6 – 7 %

Operational since October

2012 producing Mid grade
NPI.

The first blast furnace in the

country

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COKING OVEN

 Product: Coke

 Capacity: 400,000 MT

Heat recovery stem charging

coke oven, which is also the
first
coke oven in Indonesia

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SINTERING PLANT

 Product: Sintered Nickel Ore

 Surface Area: 60 m2

 Capacity: 700,000 MT

Sintering plant agglomerate

nickel ore fines with other
fine materials at high
temperature, to create an
Intermediate product that
can be used in blast furnace

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 FLOW OF PROCESSES

Diagram 1. Nickel Pig Iron Blast Furnace Process, PT Indoferro

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 PRODUCT SPECIFICATION

Element Guaranteed (%)

Product Name : Nickel Pig Iron
Ni 6.31- 6.50%
Product Code : IFN 64
Dimension : 230 x 160 x 50 mm Cr > 2.5%

Weight : 8.5 kg/piece C < 5.5%

Origin : Indonesia Si < 5%

Packing : Bulk /Loose in 20 ft Cont Mn < 1.5%

P < 0.1%

S < 0.30%

Cu < 0.10%

Pb < 0.05%

Fe by diff

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 SALES REGION

1.India 2.Taiwan 3.China 4.Europe 5.North America 6. South Africa

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PHASE 2 – HIGH GRADE NPI

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ELECTRIC FURNACE SMELTER

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NICKEL PROJECTS IN INDONESIA

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 UPCOMING PROJECTS (PROGRESS <30%)
No Company Name Input Capacity Product (tpy) % Total progress Estimated Completion Date
1 PT. Jilin Metal Indonesia (Billy Group) 390,000 NPI 45,000 29% 2016
2 PT.Bososi Pratama 288,889 Sponge Ni 52,000 28% 2016
3 Aquila Sponge Nikel (Solway Group) 1,256,173 FeNi 81,400 26% 2017
4 Ang and Fang Brothers 210,000 NPI 21,000 24% Q3-2016
5 PT. Stargate Pacific Resources - NPI 650,000 23% Q3-2016
6 PT. Cinta Jaya 61,667 NPI (4-6 %) 18,500 16% 2016
Trimegah bangun persada
7 Gane Permai Sentosa 500,000 FeNi 100,000 15% Q3-2016
PT. Kemakmuran Pertiwi Tambang
8 PT. Nusajaya Persadatama Mandiri 133,333 NPI (6-10%) 36,000 14% Q4-2016
9 PT. Sambas Mineral Mining 180,000 NPI 12,000 12% Q4-2015
10 PT First Pasific Mining 2,000,000 FeNi 200,000 11% Q4-2016
Riota Jaya Lestari
11 450,000 NPI (10%Ni) 80,000 11% 2017
Sriwijaya Raya
PT Genba Multi Mineral)
12 900,000 NPI 180,000 9% 2017
PT. Hengjaya mineralindo
13 COR Industri Indonesia 1,600,000 NPI 320,000 8% 2017
14 PT. Putra Mekongga Sejahtera 75,000 NPI 15,000 8% Q2-2016
15 Bola Dunia Mandiri 100,000 FeNi (8-10% Ni) 20,000 7% 2017
16 PT. Surya Saga Utama 50,000 NPI 10,000 6% 2017
17 PT. Antam Mitra Haltim 600,000 NPI 70,000 5% Q4 - 2016
Total Kapasitas Input 8,795,062 1,910,900
Source: ESDM March 2015

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 UPCOMING PROJECTS (PROGRESS >30%)
No Company Name Input Capacity Product (tpy) % Total progress Estimated Completion Date
1 Cahaya Modern 48,000 NPI 8,640 100% Q1-2014
2 Indoferro 1,500,000 NPI 250,000 100% 2014
3 Antam Pomala (Ekpansi) 800,000 FeNi 10,000 80% Q4-2015
Bintang Delapan Mineral
4 1,600,000 NPI (10-15% Ni) 300,000 98% 15-Apr
Bintang Delapan Energi
5 Gebe Industri Nikel 300,000 Ni (99%Ni) 6,000 80% Q2-2015
6 Integra Mining Nusantara 108,000 NPI (5-10% Ni) 21,000 71% Q4-2015
7 PT. Macika Mada Madana 290,000 FeNi (10% Ni) 53,000 62% Q2-2015
Fajar Bhakti Lintas Nusantara
8 500,000 NPI (10-16%Ni) 100,000 66% 15-Aug
Gebe Sentra Nikel
9 PT Karyatama Konawe Utara 250,000 NPI (8-10%Ni) 50,000 49% Q3-2015
10 Bhineka Sekarsa Adidaya 1,500,000 NPI 300,000 46% 2017
11 PT. Cipta Djaya Surya 3,800,000 NPI 700,000 38% 2017
12 Pernick Sultra, PT 360,000 NPI (15-25% Ni) 3,600 38% 2017
Elit Kharisma Utama
13 45,000 NPI (10% Ni) 7,500 35% 2017
Konawe Nikel Nusantara
14 Kembar Emas Sultra 280,000 NPI (14-16% Ni) 35,000 35% 2017
15 PT. Bima Cakra Perkasa Mineralindo 3,500,000 NPI (6-7%) 370,000 33% 2020
16 PT. PAM METALINDO 2,400,000 FeNi (10%) 165,000 31% Q2-2016
Wanatiara Persada (Multi Baja Industri)
17 800,000 FeNi (10-16% Ni) 110,000 40% Q2-2018
Rimba Kurnia Alam
18 Aneka Tambang - FeNi Haltim 2,500,000 FeNi 40,000 30% Q4-2016
Total Kapasitas Input 20,581,000 2,529,740
Source: ESDM March 2015

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 ESTIMATED TOTAL OUTPUT

TOTAL OUTPUT PER YEAR ( TPY ) PROGRESS > 30 %

700,000
600,000
500,000
Metric Ton

400,000
300,000
200,000
100,000
0

Nickel Output
• 2016 ~ 113,000 MT
• 2017 ~ 173,750 MT

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IS INDONESIA READY FOR STAINLESS STEEL?

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 NET EXPORTS AND IMPORTS ( STEEL )

Net Exports ( million tonnes ) Net Imports ( million tonnes )

Net Exports Net Import

Rank Mt Rank Mt
( exports - imports ) ( imports - exports )

1 China 78 1 United States 29.4

61.60kg
2 Japan 34.6 per capita 2 Thailand 13.7
3 Russia 21.3 (2013) 3 Vietnam 10.9
4 Ukraine 20.3 4 Indonesia 9.7
5 South Korea 9.5 5 Phillipines 6.7
6 Brazil 5.8 6 Saudi Arabia 6.5
7 European Union 4.7 7 Mexico 6
8 Austria 3.5 8 Algeria 6
9 Belgium 3.4 9 United Arab Emirates 5.8
10 Taiwan, China 3.2 10 Egypt 4.1
11 Turkey 2.8 11 Poland 4.1
12 Netherlands 2.8 12 Canada 3.7
13 Slovakia 2.4 13 Iran 3.7
14 Luxemborg 1.8 14 Hong Kong 3.6
15 Spain 1.6 15 Singapore 3.6
Source: World Streel Association, 2015

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 STAINLESS CONSUMPTION PER CAPITA (KG)
35

2000 2005 2010

30

25

20

15

10

Source : ISSF, International Stainless Steel Forum, 2015

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 CONCLUSION

• PT. Indoferro will commission its second phase project by mid

2016, adding a 12,000MT to existing capacity.
• According to the ESDM, a total of 43 projects will have
commenced in Indonesia form 2014-2017.
• 2016 ~ 113,000MT
• 2017 ~ 173,750MT
• Indonesia will not see any major increase in stainless production.
• Steel consumption – 61.60kg/capita (2013) [China: 438.1KG
(2010)]
• Stainless consumption - <1kg/capita (2015) [China: 8.81Kg
(2011)]
• Unless government intervene by imposing export taxes on nickel
semi finish products.

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THANK YOU FOR YOUR ATTENTION
bchan@indoferro.com
www.indoferro.com

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