Chengtun flags Wanxiang halt, Youshan anchors Indonesia nickel operations

By Dominikus

China’s Chengtun Mining Group Co., Ltd. reported contrasting developments across its Indonesian nickel portfolio, with one project halted and another maintaining stable operations, according to its latest annual report.

The company confirmed that PT Wanxiang Nickel Indonesia has ceased operations since July 2025 and is currently undergoing a court-supervised debt restructuring process under Indonesia’s Penundaan Kewajiban Pembayaran Utang (PKPU) framework.

Chengtun disclosed outstanding receivables of RMB224.86 million (approximately $31 million) related to the project, accounting for about 25% of its total other receivables. Following the deterioration in the project’s financial condition, the company increased its impairment provision to RMB179.89 million, leaving a net carrying value of around RMB44.97 million.

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The report noted that Wanxiang’s suspension and entry into PKPU led the company to shift to a specific impairment approach, significantly raising the provision level. The company did not disclose its equity interest or provide further details on restructuring progress.

In contrast, PT Youshan Nickel Indonesia continued to operate steadily in 2025, serving as a key asset in Chengtun’s overseas nickel segment. The operation forms part of the group’s broader nickel strategy in Indonesia, which remained resilient despite global oversupply and price pressure during the year.

At the group level, Chengtun reported nickel production of 49,418 tonnes in 2025, reflecting continued ramp-up across its operations.

The company said it will continue to pursue upstream resource development and smelting opportunities in Indonesia, while optimizing its asset portfolio and strengthening risk management amid volatile market conditions.

Editing by Reiner Simanjuntak