Tsingshan begins survey for planned ferronickel industry in N. Kalimantan

China? steel giant Tsingshan Holding Group has started survey activities and data collection for it plans to develop US$28 billion integrated ferronickel industry at the Tanah Kuning industrial zone in North Kalimantan Province, Bisnis Indonesia reported on Friday.

North Kalimantan Governor Irianto Lambrie said that Tsingshan officials visited the industrial zone on Thursday and other parts of the Bulungan regency as part of survey activities.

He added that the Chinese firm has also requested various data from the local provincial and regency administrations.

As has been previously reported, Tsinghan plans to develop a ferronickel industry in North Kalimantan as the firm wants to follow up its success in developing a US$1.6 billion ferronickel industry in Morowali, South Sulawesi, where the company has started trial production of ferronickel and stainless steel products since late last year. The new plan also comes following a recent meeting between Indonesian President Joko Widodo and his Chinese counterpart President Xing Jinping.

Minister of Industry Airlangga Hatarto said previously that Tsingshan plans to develop a US$28 billion integrated ferronickel industry in Tanah Kuning. The investment plan is expected to be gradually realized within the next 5-10 years, with first phase of development to be completed in 2020.

Director General of Industrial Zone Development at the ministry, Imam Haryono said that the Tsingshan new investment plans include the development of a ferronickel plant with annual capacity 1.5 million tons, ferrochrome plant 1.2 million tons, stainless steel 1.2 million tons, manganese 0.5 million tons, ferrosilicate 0.2 million tons, and alumina 1 million tons. He added that Tsingshan will also develop a 7,200 MW of hydro power plant. (*)