Indonesia's biggest steel producer Krakatau Steel plans to set up a mining unit to handle its expansion into the iron-ore and coking-coal businesses, reported media sources, citing the companys president Fazwar Bujang.
Fazwar Bujang said that, the subsidiary, to be called Krakatau Natural Resources, would be responsible for investing in the mining sector, either through the acquisition of iron ore miners and coking coal producers or through setting up its own mining operation to secure the commodities. Krakatau provided no details on how much money it will set aside for the new unit.
Krakatau currently sources its raw materials from small iron ore mines scattered across the country. It has yet to establish the coking coal supply in its $6 billion joint venture- known as Krakatau Posco - with Posco of South Korea