BONTANG, 29 October 2018 – Deputy for Mining Business, Strategic Industries and Media, of State-owned Enterprises Minister, Fajar Harry Sampurno, officially declared the plan for construction of ammonium nitrate (AN) manufacturing plants which is the major material raw of explosive industry in support to mining industry, especially coal mining. The declaration for plan for the ammonium nitrate manufacturing plant was made on Monday, 29 October 2018 in Bontang, East Kalimantan. The declaration was done with a name board uncover ceremony.
The ammonium nitrate manufacturing plant will be a joint production between DAHANA (Persero), a state-owned enterprise producing explosives and PT Pupuk Kalimantan Timur which produces fertilizer under the Holding of PT Pupuk Indonesia (Persero). The plant estate will have the production capacity of 75,000 ton ammonium nitrate per year comprising of an ammonium nitrate plant and an acid nitrate manufacturing Plant along with their supporting facilities.
According to PT DAHANA (Persero)’s President Director Budi Antono, the technology to be used in the ammonium nitrate manufacturing plant has been selected based on engineering studies done by licensors under the recommendation of BPPT. Meanwhile, selection of EPC company was done by means of international tender mechanism; Consortium of Wijaya Karya-Sedin has been appointed for the construction of the ammonium nitrate manufacturing plant.
With regard to investment value, Budi Antono estimated the ammonium nitrate plant will cots ±Rp. 1.1 trillion. Ammoniac, as the only raw material in addition to the air, will be supplied by PT Pupuk Kalimantan Timur as required.
“This project will be executed in December 2018 or early 2019, when all the necessary permits with regards to applicable laws have been satisfied. Commissioning is expected to be done in 2012,” added Budi Antono.
In view with the marketing, Budi Antono said that the domestic market will be prioritized. “Ammonium nitrate products will be fully consumed by DAHANA for DAHANA’s import substitution, so that DAHANA can save the foreign exchange,” explained Budi.
As we know, the construction of such ammonium nitrate plant will serve as the drive for its derivative product growth, for both commercial and defense sectors. The presence of ammonium nitrate manufacturing plant will be a way of building independence in terms of explosive industry which will lead to independence of the national major equipment of defense system.