Indonesia president launches US$2.7 billion China-backed ferronickel plant

[艹艹艹]

Indonesia president launches US$2.7 billion China-backed ferronickel plant
27 Dec 2021 08:09PM(Updated: 27 Dec 2021 08:04PM)

JAKARTA : Indonesian President Joko Widodo on Monday inaugurated a new ferronickel plant with 1.8 million tonne output capacity in southeast Sulawesi province built for an estimated US$2.7 billion.

The plant was built by PT Gunbuster Nickel Indonesia, a local unit of China's Jiangsu Delong Nickel Industry, at a nickel processing centre in Sulawesi, part of government plans for the resource-rich country to move up the value chain and not just export raw materials.

According to a government statement, the plant will be able to process 13 million tonnes of nickel ore annually.

Jokowi, as the president is popularly known, said the smelter will increase the value of nickel ore by 14-fold.

Establishing industries that add value is one of Jokowi's key policy objectives to maximise returns for Indonesia's natural resources and create jobs.

In 2020, top nickel miner Indonesia banned nickel ore exports to persuade foreign companies to invest in smelters.

The president reiterated on Monday that he would use the same approach to lure investors into processing other metals, including by banning bauxite shipments at the end of next year.

"So for those who want to build bauxite downstream industry, please do, because the opportunity (for exports) is only for one year," said Jokowi.

 

[Indos]

 

[MH.Yang]

Bauxite? Is there sufficient electricity supply in Indonesia?

 

[Indos]

Bauxite? Is there sufficient electricity supply in Indonesia?

Java and Bali islands are over supply, but for nickel and bauxit processing businesses usually dont want to build industry in Java, but Sulawesi island where many nickel ore mining taking place and for bauxit refinery will likely built in Kalimantan where bauxit mining are located. Sulawesi island electricity is handled by state owned utility company, PT PLN and some nickel refinery uses their own power plan like PT Vale Indonesia (Vale Brazil and Inalum from Indonesia)

Alumina refinery usually will be built in places with hidro power potency where Kalimantan island has many. This for example current project of PT Inalum and PT Antam, PT Inalum is SOE in aluminium processing while PT Antam is SOE mining company. The bauxit will come from PT ANTAM mining site.

 

[Indos]

This for instant power plants built by PT Vale Indonesia in Sulawesi island. They have 3 hidro power plants located in 3 different operation areas. They are now trying to build gas powered plant for new nickel smelter project but the construction as far as I know hasnt been started yet. PT Vale Indonesia is nickel mining and processing company in Indonesia. 20 % stake is owned by SOE PT Inalum.