Jakarta. A Central Java-based steel ball plant set up by a Chinese-Chilean joint venture is expected to enter operations by the end of 2025, according to a diplomat.

Mining industries typically use steel grinding balls to grind ore into fine particles as part of the mineral extraction. Early this year,  Elecmetal Longteng Indonesia broke ground on its grinding ball facility in Central Java’s Batang industrial estate. The consortium brings together the Santiago-based mill liner ME Elecmetal and the Chinese steelmaker Longteng Special Steel.

Chilean Ambassador to Indonesia Mario Artaza told reporters Monday that his country was aware of Jakarta’s dream of adding value to its abundant minerals by processing them into finished products. This upcoming steel ball facility is part of Chile’s intention to assist Indonesia in that goal, among others, by setting up a factory key for the country’s miners -- a plan that is already in motion. 

“The [Batang] plant is set to be operative by the end of this year,” Artaza told the press on the sidelines of a business forum in Jakarta.

He added: “Chilean technology will be producing steel balls for the Indonesian mining industry, and the rest of the world.”

Mathias Frindt, the chief financial officer of Elecmetal Longteng Indonesia, revealed that the capital expenditure (capex) on the Batang facility amounted to approximately $40 million. Working capital can stand up to $30 million once the plant reaches full capacity. 

“So around $70 million in total, … but it could be around $50 billion in the conservative case. … And this is a 50:50 joint venture,” Frindt said at the same forum.

The plant is set to produce 200,000 tons of grinding media annually. Up to 70 percent of the products will go to exports, particularly Australia, while the rest will be dedicated to the Indonesian market, according to past media reports.

More Investment
Indonesia and Chile are currently seeking to include an investment-related chapter in their trade pact, dubbed the comprehensive economic partnership agreement (CEPA). Chile, however, refused to set a target on when they would finish the talks for the chapter that would pave the way for more investments from Santiago. Artaza said, “Negotiations never have a time frame. What we do have is the goal that [the investment chapter] will be achieved.

Government data showed Indonesia-Chile trade had gone up from $264.9 million in January-July of 2024 to $327 million in the same period this year. Chile invested $350,000 in Indonesia between January and March 2025. This puts the Latin American nation on 81st place of the latter’s foreign direct investment source within that period.

Add as a preferred source on Google +