Gulf Manganese has finalised rental terms for the Bolok Industrial Estate land lease which covers the initial 10 hectare project site to be used for the development of the Kupang Smelting Hub Facility.

As part of this agreement, the company's wholly-owned subsidiary PT Gulf Mangan Grup has paid five years’ rent in advance to the government of East Nusa Tenggara Province.

A formal signing ceremony was held with the Governor Frans Lebu Raya on November 14.

The smelting hub will be directly adjacent to the government-owned power station which has recently been upgraded with a second 32 MW generator and 120 MW floating power plant. This provides ample capacity to supply the current and future needs of the smelting hub.

Construction of the Kupang Smelting Hub remains on track for commissioning of the first two furnaces in the first half of 2018.

The company has also recently secured power for the smelting hub after signing an MOU with State-owned power utility PT PLN. The MOU, which is valid for 12 months, allows for provision of up to 20 MVA power supply to the Kupang facility.

A formal power purchase agreement is expected by the end of December this year.

“The securing of power supply to the Kupang facility is a significant achievement by the business which further de-risks the project’s near term development,” said Gulf managing director Hamish Bohannan.

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