Tsingshan instigates Indonesia’s foremost nickel pig iron smelter

The nickel pig iron smelter of China’s Tsingshan Group is anticipated to start production in January, not only that, but also the mine is the second to start production after the coming of new mineral processing law, which came into the process by the beginning of this year.

JARKARTA (Scrap Monster): The finance manager of Tsigshan’s  local venture partner Bintang Delapan Mineral, Slamet Panggabean, stated that, the commissioning of the firm’s smelter project, which is located on the Indonesian Island of Sulawesi, in Morowali, would start by the beginning of October or in November. He also stated that the production is to start in January of February.

During January, Indonesia banned iron ore export, in January, in order to obtain maximum value from its mineral wealth, along with that the government started pushing its copper and nickel miners to set up metal processing plants. As a result of Indonesia’s ban nickel moved to third place, in London Metal Exchange.

China’s stainless steel makers are running out of nickel pig iron stocks, which will make them exposed to a supply gap sooner next year and will also hike the need smelters in Indonesia.

When the law was intact in 2009, China’s largest stainless steel company, Tsingshan, was the first of few other firms who took action. Many others hoped that the rule would be taken back and they fall back in production.

At Sulawesi Mining Investment, the output is expected to come up eventually and is not anticipated to come up with an output capacity 300,000 tones in the first financial year.

The joint venture is currently preparing for the second phase of the project, which would add another 600,000 tone to the project. The expansion is to be partially funded by the State Development Bank, one of China’s prominent policy lender. The amount lent is about 384 million dollars. 

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