Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Taiwan-based Walsin Lihua and Chinese stainless steel producer Dingxin Group will collaborate to construct a nickel pig iron (NPI) plant in Indonesia. The plant is likely to commence operations in the third quarter of 2021. 


Walsin passed a resolution to invest $50mn to establish Walsin Nickel Industrial Indonesia. In December 2019, Indonesia had doubled the royalties on sale of nickel ore to 10pc and halved royalties on sale of semi-finished product ferro nickel and nickel matte to 2pc to incentivise local smelters. 


The construction of the NPI plant in Morowali Industrial Park is in-line with Indonesian government’s policy to process nickel ore in Indonesia rather than exporting it. Indonesia exported around 83.04mn mt nickel ore in Jan-Sep 2019 and 2.24mn mt ferro nickel in the period, according to Davis Index analysis.

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