Posted on 09 Jun 2022
China’s stainless steel giant Tsingshan Group is planning to construct an electrolytic nickel factory in Indonesia, and has received preliminary approval from Chinese authorities, Kallanish notes.
It revealed that the project will add capacity for electrolytic nickel containing 50,000 tonnes/year of pure metal. The commissioning schedule is not yet known, and whether the product is used for stainless steel or batteries will be determined according to market conditions.
High nickel matte produced by Tsingshan’s own smelters in Indonesia Morowali Industrial Park will serve as raw materials of the project. Current capacity of the firm’s Indonesian nickel matte stands at around 10,000 t/month.
China imported 12,683t of high nickel matte from Indonesia in April, occupying 98% of total imports, Chinese customs data shows. Meanwhile, total April imports, which surged 327% from February, moved further to approach China’s total nickel matte processing capacity of about 20,600-24,400 t/m.
Tsingshan’s new plant is expected to alleviate the possible insufficiency of processing capacity in the future and ensure China's supply of high-grade nickel matte.
The Indonesian Ministry of Investment in May announced considerations for export taxes on processed goods with less than 70% nickel metal. By producing electrolytic nickel, companies could escape this possible export tax.
Source:Kallanish
