TEX reported that projects of smelting nickel in Indonesia are in rush for governmental approval, before the year of 2014 when exports of nickel ore will be basically banned in accordance with the New Mining Act.
China is to produce 240,000 to 250,000 tonnes of nickel contained in the nickel pig iron in 2011, up by as much as 50% from last year, relying upon Indonesia for almost all of the need of the nickel ore.
Meanwhile, Indonesian government enacted in 2009 New Mining Act in order to nurture domestic industries by adding value to the domestically produced raw commodities, such as nickel ore of which export is to be basically banned from the year of 2014.
Supply by the nickel content in NPI holds a substantial part for Chinese domestic nickel demand (total of 65,000 tonnes per year) and there are expansion plans of NPI production in China for future growth of economy. However, the most important factor for the NPI production is how to secure raw materials, nickel ore.
Under the circumstances, Chinese big companies have been trying to somehow secure nickel in Indonesia and already made presentations to the Indonesian government for approval to such plans as establishing nickel processing plants in Sulawesi Island in cooperation with Indonesian partners.
Indonesian government released late September the following details of the ongoing projects of nickel smelting in Indonesia involving Chinese companies:
1. Jilin Horoc Nonferrous Metal Group having its headquarter in Jilin province in China signed an agreement with an Indonesian company to jointly construct a nickel smelter refinery of which capacity is 100,000 tonnes per year. Mr Hatta, Coordinating Minister for Economic Affairs of Indonesia attended to the signing ceremony. Production is to start early 2012 with investment of CNY 20 billion.
2. Tsinghshan Steel's project is to construct a nickel smelter/refinery in Sulawesi Island by investing USD 4 billion. The project aims at nickel production as well as stainless steel production, according to Mr. Hidayat, Industry Minister of Indonesia. Tsingshan Steel is appealing the Indonesian government for support in ore supply from the mines under the government's ownership, and in introducing local partners.
3. PT Central Omega Resources (formerly called PT Duta Kirana Finance) having a project to construct a ferronickel smelter in Morowali located in Sulawesi island, intends to invite investors from China. Construction is to complete mid 2013 through a total investment of USD 500 million.
(Sourced from TEX Report Limited)
