China ENFI starts upgrade of Jinchuan WP ferronickel facility in North Maluku
Wednesday, March 18 2026 - 07:54 AM WIB
By Dominikus
China ENFI Engineering Corp has commenced construction of an upgrade project at the ferronickel processing facility of PT Wanatiara Persada (WP) in North Maluku, according to the company on Tuesday (March 17).
The project, which is being executed under an engineering, procurement and construction (EPC) scheme, marks a modernization effort at WP’s ferronickel smelting operations located on Obi Island, South Halmahera Regency.
The groundbreaking ceremony for the upgrade project was held on March 16, the company said.
WP currently operates a ferronickel smelting facility using rotary kiln electric furnace (RKEF) technology to process laterite nickel ore. The plant consists of four electric furnace production lines, each with a capacity of 33 MVA.
Following completion of the upgrade, ferronickel output is expected to increase by around 20%, supported by improvements in furnace performance and process efficiency.
The company noted that in recent years, operations have faced challenges due to declining ore quality and increasingly complex feed composition. These factors have resulted in constraints in drying capacity, increased operational difficulty for enclosed electric furnaces, and rising pressure on both production efficiency and cost control.
Read also : GEM, China ENFI strengthen cooperation on laterite nickel resource development
To address these issues, the upgrade program will include enhancements to electric furnaces, expansion of drying kiln capacity, and optimization of overall equipment layout. The project is also positioned as part of a broader push toward technology-driven improvements and greener operations.
Jinchuan Group, which is controlled by the Gansu Provincial Government, holds a 60% stake in WP through its subsidiary Mining Metallurgy Ltd. WP operates a nickel concession covering 1,725.54 hectares on Obi Island. The company also owns a 40% stake in PT Rimba Kurnia Alam (RKA), which holds a separate 1,800-hectare concession in the same regency.
Combined, the two concessions contain resources of 89.91 million tonnes and reserves of 12.9 million wet metric tonnes, with an average nickel grade of 1.71% and iron grade of 18.38%.
The upgrade at WP comes as Jinchuan continues to expand its Indonesian portfolio. The company has previously stated its ambition to increase its nickel production in Indonesia to 100,000 tonnes per year.
In addition to its mining operations, Jinchuan also holds a 50.1% stake in two smelting projects at the Indonesia Weda Bay Industrial Park (IWIP), in partnership with Perlux, a subsidiary of Tsingshan Holding Group.
These include PT Kao Rahai Smelters (KRS), which produces ferronickel using four RKEF lines, and PT Universe Smelter Metal Industry (USMI), which is designed to produce 50,000 tonnes of high-grade nickel matte annually.
The latest upgrade at WP is expected to strengthen Jinchuan’s upstream supply base and improve overall integration with its downstream smelting operations in Indonesia.
Editing by Reiner Simanjuntak