China Nickel to open nickel steel plant in Indonesia

China Nickel Resources Holdings Co, China?s largest nickel steel producer, announced on Tuesday that its steel plant in Indonesia will start operation at the end of 2009, Chinese media reported.

Steel products of the plant which is expected to have an initial output of one million tons, will be exported to Southeast Asia and the Middle East, company president Dong Shutong told reporters at the sidelines of the 4th Asian Stainless Steel Conference.

China Nickel Resources bought an ore outsourcing company named SEA Mineral for US$350 million in May last year. The latter has a 14-year distribution contract with an Indonesia nickel mine. With the deal, the Chinese company has got the ownership of about 70 million tons of iron ore containing 1 percent nickel.

Meanwhile, Dong revealed that the company plans to invest around RMB 1 billion to a local stainless steel project, but declined to provide further details. (*)