Tsingshan plans integrated ferronickel industry in N. Kalimantan

China? steel giant Tsingshan Holding Group plans to develop an integrated ferronickel complex at the planned Tanah Kuning industrial zone in North Kalimantan.

North Kalimantan provincial administration said in a statement on Tuesday that Tsingshan?s plan was unveiled by Coordinating Minister for Maritime Affairs Luhut Panjaitan during a coordinating meeting on Monday. Luhut said that Tingshan 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 plan also comes following a recent meeting between Indonesian President Joko Widodo and his Chinese counterpart President Xing Jinping.

The statement said that the North Kalimantan administration welcomes the planned new investment, and said that a 25,000-ha land has been allocated for the first stage development of the Tanah Kuning industrial zone.

Meanwhile, Minister of Industry Airlangga Hatarto also said on Tuesday 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.

Director General of Industrial Zone Development at the ministry, Imam Haryono was quoted by Bisnis Indonesia as saying that the Tsingshan new investment plans including 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.

The paper said that the first stage Tanah Kuning industrial zone is expected to be completed in 2020. ?Tanah Kuning could become the largest smelting complex from upstream to downstream,? Imam said.

Editing by Reiner Simanjuntak