China’s Chengtun Mining Group is reportedly planning to invest $245m in a nickel matte project in Indonesia.
The $350m project is planned to be developed in a joint venture (JV) with Singapore-registered firm Extension Investment, reported Reuters citing a filing.
Known as PT ChengMach Nickel, the JV will be 70% owned by Chengtun unit Hongcheng International Resources.
Hongsheng and Extension Investment will sign a JV agreement, with an initial $1m in authorised registered capital, reported Shanghai Metals Market.
The venture aims to produce 40,000tpa of nickel matte on a metal content basis.
Extension Investment will own the remaining stake in the venture, which will be Chengtun’s second Indonesian nickel matte project.
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Chengtun’s first project is to be built in Weda Bay on the island of Halmahera and will have a 34,000tpa capacity.
The nickel matte is an intermediate product, which can be further processed into battery-grade nickel sulphate for use as a raw material for electric vehicle (EV) battery chemicals.
Earlier this year, PT Vale Indonesia (PTVI) teamed up with China Baowu Steel Group (Baowu) subsidiary Taiyuan Iron & Steel Group (TISCO) and Shandong Xinhai Technology (Xinhai) to produce stainless-steel raw material nickel pig iron (NPI).
A cooperation framework agreement was signed to construct and operate the Bahodopi processing facility.
The firms will form a JV to develop a nickel processing facility and supporting facilities at Xinhai Industrial Park, Morowali, Central Sulawesi.