Tsingshan Steel to build $4b nickel smelting plant in Sulawesi

Tsingshan Steel, a subsidiary of Chinese conglomerate Dingxin Investment Group, will team up with Indonesian business group Bintang Delapan to develop a nickel mining and smelting project with investment of US$4 billion in Central and Southeast Sulawesi, Bisnis Indonesia reported on Tuesday.

Industry Minister M.S. Hidayat said in Jakarta on Monday that the Chinese company and its local partner would produce stainless steel for both local and export markets. ?They will be engaged in nickel mining and smelting activities to produce stainless steel,? Hidayat said in Jakarta on Monday.

The minister said that Tsingshan Steel would be one of several companies which would build smelting plants in anticipation of the implementation of an article in the mining law which prohibits mining companies from exporting raw materials beginning 2014.

Hidayat said that Tsingshan would spend at least $1 billion in the first stage of the development of the company?s mining and smelting project. Total investment is expected to reach $4 billion.

The minister promised to provide fiscal incentives such as the tax holiday or tax allowance as stated in the revised government regulation No.62/2010. ?If they are serious with their investment plan, we will give them tax holiday or at least tax allowance,? he added. (*)