Global Times reported that Jilin Ji En Nickel Industry plans to spend CNY 50 million on a subsidiary in Inner Mongolia to tap more mineral resources. The subsidiary's business scope will include nickel, copper, cobalt, iron smelting and byproduct processing.

Analysts said that the subsidiary will probably focus on nickel processing and copper ore exploration since Inner Mongolia does not have many nickel reserves.

Mr Ma Xiao nickel analyst with Shandong Zhuochuang Info said that "The subsidiary is probably not being set up to carry out nickel mining. Most ferronickel producers import nickel ore via the port in Tianjin, and Inner Mongolia has low price electricity and cheap labor. Ji En is most likely carrying out nickel processing."

Mr Ma said that in addition to nickel processing, rich copper ore in Inner Mongolia might be another reason for Ji En to open the subsidiary, adding she learned from some industry insiders that only local enterprises are permitted to use copper ore in the region.
Ms Zhang Fang nonferrous metal analyst with China Securities agreed with Mr Ma on the lack of nickel reserves in Inner Mongolia. But she also said that new nickel ore might have been discovered in Inner Mongolia without being made public.

(Sourced from www.gloaltimes.cn)