Company from the PRC will be included in Indonesian Nickel project
We are talking about manufacturers of stainless steel from China — the company Tsingshan Group. Its representatives signed the agreement with Eramet, France. The contract specifies the conditions for the acquisition of a controlling block of shares in respect of the Deposit of Nickel Weda Bay. It is located on the island of Halmahera in Indonesia. It is assumed that the Tsingshan Group to buy 57% stake in the company Strand Minerals Pte Ltd. It is in the ownership of 90% of the reserves. The remaining 43% will be owned by Eramet.
The interest of the Chinese manufacturer is justified and understandable. Weda Bay is one of the largest world deposits of Nickel. In accordance with the results of geological studies of the metal content reaches approximately 9.3 million tons. In plans of partners — construction of a plant for processing ore using pyrometallurgical process. The estimated annual production capacity will reach 30 thousand tons of ferronickel. Commissioning should take place in 2020. The project participants will manage their own property’s share of production independently. Most likely, the Chinese company will use this Nickel 's interests in an Indonesian iron and steel assets.
Last year, Tsingshan Group has launched in Indonesia a plant for the production of stainless steel. Its annual production capacity is 1 million tons. The company plans to build another plant. Meanwhile, the national company will resume exports of Nickel raw materials. The first batch was intended for Chinese consumers. Its volume amounted to 150 thousand tons. It is expected that in the next twelve months delivery in China will reach 2.7 million tons of ore.