Three Chinese firms to invest in RI?s metal sector

Three Chinese companies including Nanshan Aluminium, Shandong Gold Group, and China Nonferrous Metal Industry?s Foreign Engineering, and Construction Co (NFC) plan to invest a combined US$2.5 billion in Indonesia?s metal and precious metal sector, Investor Daily reported on Thursday.

Without disclosing its source, the paper said that Nanshan plans to develop a bauxite smelter on Bintan Island, Riau Islands Province, with investment of $859 million.

NFC plans to acquire 51 percent shares in PT Dairi Prima Mineral, a subsidiary of IDX-listed mining firm PT Bumi Resources Minerals Tbk, which is developing a $200 million zinc mine in North Sumatra.

Meanwhile, Shandong Gold Group is looking to acquire EMR Capital, the owner of the Martabe gold mine in North Sumatra, in a transaction estimated at $1.5 billion.

The planned investment by the three companies comes following aggressive investment by Chinese firms since 2014 in Indonesia?s mineral downstream sector particularly in nickel smelter. According to the Indonesia Refinery and Processing Companies Association (AP3I), total investment by the Chinese investors in the sector has reached $18 billion, and could further increase to $23 billion going forward as a number of Chinese firms plant to set up stainless steel production facilities in Indonesia, which has abundant supply of raw materials including nickel ores. (*)