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.
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.