Chinese firm withdraws from Halmahera nickel project

Chinese company Tsingshan Holding Group Co. Ltd has withdrawn from an Indonesian nickel mine project which will be developed by the company in cooperation with state-owned mining firm PT Aneka Tambang (Antam), Kontan reported on Monday.

Tsingshan?s president Jiang Xinfang told Reuters that the withdrawal decision was made after the local government revoked the permit.

The Chinese company decided to pull out from the nickel mine project located on the Obi island after the local administration of South Halmahera regency in North Maluku cancelled the permit awarded to Antam to develop a nickel mine in the regency.

The local government revoked the permit due to the lack of progress in the development of the mining area. Antam received the permit in 2004.

Antam challenged the permit revocation at the Ambon administration court last year, but in its verdict issued in January, this year the court upheld the local government?s decision.

?We have appealed to the high administration court in Makassar,? Antam?s corporate secretary Bimo Budi Sastriyo said.

In Oct, 2007 Antam signed an agreement with Tsingshan to conduct a feasibility study of jointly developing an integrated stainless steel facility at Antam's laterite ore concession at Obi island, North Maluku.

The study will consider a project, which consists of a power plant, a ferronickel plant and a stainless steel plant and will determine the capacity and the investment amount of the facility. (*)