China-based Chengtun Mining has invested $145.42mn for a nickel matte project in Indonesia’s Weda Bay Industrial Park. The project which is being built by Youshan Nickel Industry is set to have yearly capacity of 34,000mt. The project is currently in the installation stage and entails a total investment of $406.79mn.
According to Chengtun’s foreign investment announcement, the project could take up to 24 months for construction. Output in the first year of operations is expected to reach 70pc capacity. In the second year, it will be ramped up to 100pc.
The company believes growth in the production of new energy vehicles across the world will spur demand for nickel in the coming years. These vehicles are increasingly using the ternary batteries which contain nickel. Chengtun believes Indonesia, with its abundant laterite nickel resources and low development cost, could prove to be an asset.