Indonesia’s Energy and Mineral Resources Ministry announced on Dec. 27 that there are 13 new nickel smelters that completed construction by October 2017 with total investment of $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 tonnes of nickel ore into 598,000 tonnes of Ferronickel and NPI as well as 64,000 tonnes of NiMatte.
The 13 smelters are as follows:
|(In Tonnes)||(Jan. -Oct. 2017)|
|1||PT Vale Indonesia||Matte||845,000,000||8,000,000||Production. Jan-Oct exports: 64,244 tons|
|2||PT Aneka Tambang (Pomala)||FeNi||600,000,000||2,716,948||Production. Jan-Oct exports: 85,539 FeNi|
|3||PT Fajar Bhakti Lintas Nusantara||NPI||174,000,000||1,065,215||Production. Jan-Oct exports: 106,468 tons NPI|
|4||PT Sulawesi Mining Investment||FeNi||636,000,000||1,600,000||Production. Jan-Oct exports:194,579 tons FeNi|
|5||PT Gebe Industry Nickel||NiOH||150,000,000||1,100,000||Output: 10,000 tons/mo of Ni(OH) and 1,000 tons/m of Ni (99%)|
|6||PT Megah Surya Pertiwi||FeNi||320,000,000||2,079,732||Production. Jan-Oct exports: 84,537 tons FeNi|
|7||PT COR Industri Indonesia||NPI||400,000,000||818,827||Finished commissioning and started production. Jan-Oct exports: 24,797 tons NPI|
|8||Heng Tai Yuan||NPI||36,300,000||250,000||Production. Jan-June exports: 3,566 tons NPI|
|9||Century Metalindo||FeNi||50,000,000||641,026||Production. Jan-Nov exports: 11,349 tons FeNi|
|10||Indonesia Guang Ching Nikel and Stainless Steel||NPI||1,020,000,000||7,500,000||Production. Jan-March exports: 30,000 tons NPI|
|11||Virtu Dragon||FeNi||500,000,000||4,560,000||Production. Aug-Nov exports: 31,850 tons FeNi|
|12||PT Surya Saga Utama||N/A||300,000,000||3,500,000||Production started in November 2017. Sales: 1,028 tons 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 ton FeNi|
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:
|(In Tons)||(Jan. -Oct. 2017)|
|1||PT Indoferro||NPI||160,000,000||800,000||Has stopped operation since 19 July 2017|
|2||PT Cahaya Modern Metal Industry||NPI||50,000,000||298,359||Has stopped operation since January 2016 as coke price hit US$300/ton, from US$100|
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 US$200-US$300/ton in end 2016, from US$100/ton 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 pickup 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 million tons nickel ore. The companies are as follows:
|1||PT WanatiaraPersada||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||HuadiNikel Alloy Indonesia||NPI||300,000,000||500,000||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 FajarBakti (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 NugrahaIndotama||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%|