Indonesia’s Energy and Mineral Resources Ministry announced on Dec. 27 that there are 13 new nickel smelters have completed construction by Oct’17 with total investment of USD 5.03 billion.
The smelters produce a variety of nickel products, including Nickel Pig Iron, Ferronickel Dan NiHidoxide, the ministry said in a statement. The smelters have processed total 34 million tons of nickel ore into 598,000 MT of Ferronickel and NPI as well as 64,000 MT of NiMatte.
The 13 smelters are as follows:
|
No. |
Company |
Product |
Investment |
Input Capacity (In MT) |
Activity (Jan -Oct’17) |
| 1. | PT Vale Indonesia | Matte | 845,000,000 | 8,000,000 | Production. Jan-Oct exports: 64,244 MT |
| 2. | PT Aneka Tambang (Pomala) | FeNi | 600,000,000 | 2,716,948 | Production. Jan-Oct exports: 85,539 MT FeNi |
| 3. | PT Fajar Bhakti Lintas Nusantara | NPI | 174,000,000 | 1,065,215 | Production. Jan-Oct exports: 106,468 MT NPI |
| 4. | PT Sulawesi Mining Investment | FeNi | 636,000,000 | 1,600,000 | Production. Jan-Oct exports:194,579 MT FeNi |
| 5. | PT Gebe Industry Nickel | NiOH | 150,000,000 | 1,100,000 | Output: 10,000 MT/month of Ni(OH) and 1,000 MT/month of Ni (99%) |
| 6. | PT Megah Surya Pertiwi | FeNi | 320,000,000 | 2,079,732 | Production. Jan-Oct exports: 84,537 MT FeNi |
| 7. | PT COR Industri Indonesia | NPI | 400,000,000 | 818,827 | Finished commissioning and started production. Jan-Oct exports: 24,797 MT NPI |
| 8. | Heng Tai Yuan | NPI | 36,300,000 | 250,000 | Production. Jan-June exports: 3,566 MT NPI |
| 9. | Century Metalindo | FeNi | 50,000,000 | 641,026 | Production. Jan-Nov exports: 11,349 MT FeNi |
| 10. | Indonesia Guang Ching Nikel and Stainless Steel | NPI | 1,020,000,000 | 7,500,000 | Production. Jan-March exports: 30,000 MT NPI |
| 11. | Virtu Dragon | FeNi | 500,000,000 | 4,560,000 | Production. Aug-Nov exports: 31,850 MT FeNi |
| 12. | PT Surya Saga Utama | N/A | 300,000,000 | 3,500,000 | Production started in November 2017. Sales: 1,028 MT Luppen FeNi |
| 13. | PT Bintang Timur Steel | FeNi | 2,150,000 | 292,000 | Has yet to consistently in operation since July 2015. 2017 production: 2,714 MT FeNi |
| TOTAL | 5,031,300,000 | 33,831,748 |
There are 2 existing nickel smelters that have ceased their operation as surging coke prices increased operation costs and weakening metal prices early this year:
|
No. |
Company |
Product |
Investment |
Input Capacity (In MT) |
Activity (Jan-Oct’17) |
| 1. | PT Indoferro | NPI | 160,000,000 | 800,000 | Has stopped operation since 19 July 2017 |
| 2. | PT Cahaya Modern Metal Industri | NPI | 50,000,000 | 298,359 | Has stopped operation since January 2016 as coke price hit USD 300/MT, from USD 100 |
| TOTAL | 210,000,000 | 1,098,359 |
Coke price accounts for 40 percent of production costs at PT Cahaya Modern Metal Industry, which used blast furnace technology for processing nickel. The smelter has been idled after coke price surged to USD 200-USD 300/MT in end 2016, from USD 100/MT in 2015.
As for PT Indoferro, the company’s smelter wasn’t designed to process nickel ore, which made its operation uneconomical. The company’s smelter was initially designed to process iron ore.
The government noted a pick up in investment following the issuance of two Energy and Mineral Resources Minister decrees, which allow companies to sell low-grade nickel and use the revenue from sales to finance construction of their smelters.
There are 11 companies making new investments and 2 companies expanding their existing capacities with total investment worth US$4,3 billion and input capacity of 28 MnT nickel ore. The companies are as follows:
|
No. |
Company |
Product |
Investment |
Input Capacity (In MT) |
Activity
|
| 1. | PT Wanatiara Persada | FeNi | 658,000,000 | 2,200,000 | Construction progress: 5.3% |
| 2. | PT Aneka Tambang (Haltim) | FeNi | 262,185,000 | 1,219,945 | Construction progress: 8.8% |
| 3. | PT First Pasific Mining | FeNi | 200,000,000 | 620,000 | Construction |
| 4. | Bintang Smelter Indonesia | NPI | 231,000,000 | 992,000 | Construction progress: 39.2% |
| 5. | PT Artabumi Sentra Industri | NPI | 155,969,778 | 1,800,000 | Construction |
| 6. | Huadi Nikel Alloy Indonesia | NPI | 300,000,000 | 500,000 | Construction |
| 7. | Kinlin Nikel Industri | NPI | 165,000,000 | 123,675 | Commissioning |
| 8. | Titan Mineral | NPI | 300,000,000 | 530,000 | Construction |
| 9. | PT Wan Xiang | FeNi | 850,600,000 | 7,000,000 | Construction |
| 10. | PT Macika Mineral Industri | NPI | 68,724,118 | 728,640 | Construction progress: 40% |
| 11. | PT Fajar Bakti (Expansion) | FeNi | 257,692,308 | 4,024,581 | Construction |
| 12. | Sambas Minerals Mining | FeNi | 169,125,231 | 2,970,00 | Construction progress: 3.22% |
| 13. | Ceria Nugraha Indotama | NPI | 700,650,374 | 4,900,000 | Construction progress: 0.03% |
| 14. | PT Integra Mining Nusantara | NPI | 63,950,000 | 923,760 | Construction progress: 20% |
| TOTAL | 4,319,946,809 | 28,532,601 |
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