Home / Directory / List News / Detail News

Vale Indonesia Inks $2.1b Ferronickel Project Deal with China's Baowu Steel

www.jakartaglobe.id

Tue 06 Sep 2022, 08:19 AM

Share

Events

Listed miner Vale Indonesia, one of the country's largest nickel producers, said on Tuesday it had signed an investment agreement with China's Shandong Xinhai Technology, a unit of Baowu Steel Group, to develop a ferronickel processing plant in Sulawesi.

The plant would cost around $2.1 billion and have the capacity to produce ferronickel with 73,000 to 80,000 tons of nickel content a year at Bahodopi in Morowali, Central Sulawesi.Febriany Eddy, Vale Indonesia's chief executive officer (CEO), expected the new plant construction would finish in 2025 at the latest.


Under the agreement, Vale and Shandong Xinhai would establish a new joint venture (JV) with the former controlling 49 percent, Bernardus Irmanto, the Vale Indonesia's finance director, said. Taiyuan Iron & Steel (Tisco), a Shandong Xinhai's and Baowu's subsidiary, would together control the reminder 51 percent.

He noted that the partners were also discussing the possibility of adding a stainless steel plant in the future. Wang Wenlong, Shandong Xinhai chairman, said the Bahodopi project would be Indonesia's first nickel plant to be powered by liquefied natural gas.

In Pomalaa, another area on Sulawesi Island, Vale and its partners are developing a plant to produce 120,000 tonnes per year of mixed hydroxide deposits, a material extracted from nickel ore to be used in batteries for electric vehicles (EVs).

Vale Indonesia controls the Sorowako mine, Indonesia's largest nickel mine, located in South Sulawesi. The mine produced 71.600 metric tons of nickel in 2020, according to the GlobalData mining database. Vale Indonesia said with the installed facility today, the mine could operate until 2045.

Source: https://jakartaglobe.id/business/vale-indonesia-inks-21b-ferronickel-project-deal-with-chinas-baowu-steel

Advertisement

Relate News

News
18 May 2022, 07:12 AM

Nickel Mines acquires Indonesian nickel-cobalt project

www.asiaminer.com
3805 Views
News
16 Sep 2022, 10:15 AM

Nickel Industries' Indonesian nickel mine is now one of the 10 largest deposits in the world

suarapalu.com
2963 Views
News
07 Feb 2024, 12:00 PM

Government Demands Vale Indonesia (INCO) Divestment to be Accelerated

Kontan / Dok. INCO
2473 Views
News
12 Oct 2023, 12:00 PM

Bayan Group's subsidiary, PT Fajar Sakti Prima,Wins Good Mining Practice Awards

CNBC Indonesia TV
3367 Views
Hello! We would like to talk to you.Please fill the details below to start chatting with us.