- Published 2026.11.05 05:20
Krakatau POSCO executive notes full import dependence at local mining event
"Can be replaced by local mines with infrastructure expansion"... also hints at expanding coal procurement
Krakatau POSCO, a joint venture between POSCO and Indonesian state-owned steelmaker Krakatau Steel, has signaled the possibility of shifting its annual iron ore imports of 5 million tons to local procurement. Leveraging Indonesia's abundant mineral resources could enhance cost competitiveness and diversify its raw material supply chain.
At the Minerba Convex 2026 mining exhibition held in Jakarta on Nov. 4, Haryanto, commercial director of Krakatau POSCO, highlighted the company's annual iron ore demand and emphasized the potential for substitution through local mines. "Krakatau POSCO imports 5 million tons of iron ore every year," he said. "This means there is potential for it to be replaced by domestic supply."
Krakatau POSCO, located in Cilegon, Indonesia, is Southeast Asia's first large-scale integrated steel mill, producing about 3 million tons of steel annually. The process consumes 5 million tons of iron ore and about 2 million tons of coking coal each year. Considering that 5 million tons stacked 5 meters high would amount to about 10,000 tons, the scale is enormous. Until now, Indonesia's iron ore processing industry has been underdeveloped, forcing reliance on imports for key raw materials.
For a full-scale expansion of local procurement, infrastructure development and advancement of mineral processing technology are cited as key challenges. Director Haryanto noted, "For the development of the domestic iron ore industry, government infrastructure support such as port and road accessibility is essential." Smooth logistics from mines to processing facilities must be supported.
Major iron ore deposits in Indonesia include Sumatra, Taliabu in Maluku, and Central Kalimantan. However, mineral characteristics vary by region, requiring customized processing technologies. Director Haryanto explained, "Iron ore from Sumatra is relatively clean as it contains no impurities such as titanium, zinc, or tin," while "minerals from Taliabu and Central Kalimantan contain impurities and require additional processing."
In addition to iron ore, Krakatau POSCO is also seeking local procurement of coking coal, which requires about 2 million tons annually. It currently sources 30-35% of its needs from areas such as Central Kalimantan and remains open to additional supply from cost-competitive suppliers.
※ This article is an AI translation of the Korean original published by Korea Credit News; it was checked by automated quality guards and published by the English edition desk.
