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To: LoneClone who wrote (30422)12/16/2008 9:23:35 PM
From: LoneClone  Read Replies (1) | Respond to of 193970
 
Morowali boasts of mineral wealth

thejakartapost.com

Morowali, which spans 45,453 square kilometers, is promoting itself as the richest regency in Central Sulawesi in terms of natural reserves, from marble to mineral oil.

"Yes, if I may brag a little, the whole area is replete with natural resources waiting to be fully exploited," Morowali Regent Anwar Hafid told The Jakarta Post recently.

He said that nickel alone covered an area of around 149,000 hectares with estimated reserves of 8 million tons. The Tompira block consists of an inferred reserve of limonite ore at 6 million tons with nickel content of 1.4 percent and 300,000 tons of saprolite with nickel content of 2.4 percent.

The Ungkaya block holds an inferred potential of limonite at 3.1 million tons, with nickel content of 1.37 percent and 200,000 tons of saprolite, with nickel content of 2.63 percent.

The Bulu Taloa block has an estimated limonite reserve of 1 million tons, with nickel content of 1.15 percent.

PT INCO Tbk. has been exploiting the Bahodopi block, spanning around 36,000 hectares, since 1968; PT Rio Tinto, which holds a nickel mining concession spanning 132,100 hectares is also operating in the block.

Meanwhile, a 3,000-hectare chromite mine can be found in West Bungku district. It has an actual reserve of 88,010 dry metric tons (dmt) of chromite, a raw material used for making stainless steel. Its estimated deposits are around 459,772 dmt and inferred reserves of 250,000 dmt, with an average chrome content of 4 percent.

Not only that, according to Anwar, Morowali also holds very promising marble reserves, found in Tinompo, Uluanso, Wawopada, Korowalelo and Beteleme villages in Lembo district, as well as in Didiri, Koromatantu, Bunta and Bungiatimbe villages in Petasia district.

The onyx type of marble has also been found in Petasia district, which holds deposits of around 25 hectares.

The regency is also replete with limestone, located in Petasia, Lembo, North Bungku and South Bungku districts.

"The reserves are estimated at 30 million cubic meters," said Anwar.

There is also abundant phosphate, found in the limestone caves in Wawopada village, Lembo district, although the amount of reserves is not yet known.

"It is being analyzed by a team," Anwar said.

Coal deposits have been found in Londi, Trende and Ensa villages in Mori Atas district.

Morowali also claims promising potential in oil and gas. Oil has been found at a site in North Bungku district known as the Tiaka block.

The Tiaka oil field, located about 27 kilometers offshore, has been jointly operated by state oil and gas producer Pertamina and private producers Medco and Ekspan Tomori Sulawesi since 2001. The companies are currently pumping crude oil from six wells there.

Estimates put the amount of original oil in place (OOIP) in the oil field at 106.56 million barrels.

Output from the six wells totals around 6,500 barrels per day (bpd), with each well producing around 1,100 bpd.

Production in the area began in July 2005. Crude oil from the Tiaka block is sent for processing at the Pertamina refinery in Plaju, South Sumatra.

The Tiaka oil field initially produced around 1,200 barrels of crude oil daily. By January 2006, production had reached 1,850 bpd and further increased to 4,000 bpd by the end of 2006, thanks to the operation of additional wells.

Peak production is estimated to be around 80,000 bpd.

The regency administration has currently recorded more than 100 mining concession holders in the area. However, its revenue has suffered a setback over the past three years, dropping more than Rp 75 billion (US$6.63 million) in 2006, and Rp 63 billion in each of 2007 and 2008, while the regency budget for 2007 stood at Rp 279 billion, and for 2008 at Rp 590 billion.