Construction of SMI's 300,000-tpy NPI Smelter in Indonesia underway

Construction of one of the first nickel pig iron smelters outside China, by PT Sulawesi Mining Investment (SMI), has formally kicked off on July 16 as reported by Metal.com.

SMI is a joint venture between Indonesia's nickel mining PT Bintangdelapan Group and China's Tsingshan Holding Group?s NPI producing subsidiary Fujian Dingxin Industries Co.

Construction started for the first stage of the project in China-Indonesia economic and trade cooperation zone in Central Sulawesi, the construction contractor is China Metallurgical Group Corp. (MCC).

The first stage of the project is designed for a capacity of 300,000 tpy and employs the world?s most advanced rotary kiln electric furnace (RKEF), MCC said, adding the plant is expected to come on stream on December 31, 2014.

Many nickel producers are expected to build ferronickel plants in Indonesia after it was reported that a 20% export tariff on raw ore will be imposed from May 2014. China is Indonesia's top customer for its nickel laterite ore. (*)