Huayou commits to full nickel industry value chain development in Indonesia
17 Jan 2024, 12:00 PM
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Huayou Indonesia, which is part of Zheijiang Huayou Cobalt Co. Ltd., promises to bring the entire nickel downstream industry chain to the country with a note of certainty of long-term policy sustainability.Deputy Director of External Affairs at Huayou Indonesia, Stevanus, stated that for the past five years, his party has invested USD 21.5 billion, or equivalent to IDR 300 trillion, in nine nickel projects in Indonesia."In the future, it is possible to bring more with a record that the leadership transition can run well and the vision for downstream is still supported," he said during the Media Gathering in Jakarta on Friday (12/1).Steven stated that so far, Huayou sees the Indonesian government's roadmap for nickel downstream, especially for electric vehicles, in line with world business trends.He reminded that continuity of leadership and policies is very important for the business world, especially for downstream programs that require certainty of long-term plans and large investments. Therefore, Huayou expects continued support from the government for investment in the downstream mineral industry chain, especially to secure the supply quota of raw materials such as low-grade limonite ore.According to him, the government's move to limit the Rotary Kiln Electric Furnace (RKEF) smelter that produces Nickel Pig Iron (NPI) and Ferronickel is appropriate. The reason is that the life of high-grade nickel ore reserves will be shorter if the RKEF smelter is not limited."At the same time, low-grade nickel ore loses its potential because it is not optimized. In fact, low-grade nickel resources are greater than high-grade nickel, which can bring large foreign exchange for the country, "he said.Huayou considers that now is not the time for RKEF smelters whose production is limited to NPI and Ferronickel. In fact, RKEF technology can be improved in order to produce nickel matte. This effort can be carried out to balance the exploitation of low and high grade nickel ore so that resource utilization can be maximized. On the other hand, it is time for High Pressure Acid Leaching (HPAL) smelters that absorb low-grade nickel ore to be propagated in Indonesia, along with the spur of production of raw materials for electric vehicle batteries. "So the steps of the Indonesian government are very appropriate, so don't think from the business side because business people will rack their brains to make money from existing conditions," he said. For information, Huayou began operating in Indonesia since 2018 and has developed several projects in the country. Some of those projects are as follows. The High Pressure Acid Leaching (HPAL) project in Indonesia Morowali Industrial Park (IMIP) is run by PT Huayue Nickel Cobalt. The project began construction in 2020 and reached production in 2021 with an annual capacity of 60,000 tons of nickel in Mixed Hydroxide Precipitate (MHP). Huayou also invested in Indonesia Weda Bay Industrial Park (IWIP) with Tsingshan Holding Group and Zhenshi Holding Group Co., Ltd in 2018. Then PT Huake Nickel Indonesia and PT Youshan Nickel Indonesia at IWIP is a Rotary Klin Electric Furnace (RKEF) project that began construction in 2018 and is currently in the operating stage with a total annual capacity of 90,000 tons of nickel in matte. Then, PT Huafei Nickel Cobalt at IWIP is an HPAL project that began construction in 2021 and reached production tests in June 2023 with an annual capacity of 120,000 tons of nickel at MHP. There is also the PT Kolaka Nickel Indonesia project run by Zheijang Huayou Cobalt Co. with PT Vale Indonesia Tbk (INCO) and Ford Motor Company, namely the HPAL smelter which will produce 120,000 tons of nickel in MHP in Pomalaa, Southeast Sulawesi. The project is marked by a definitive agreement signed on March 30, 2023.Huayou also participated in the Grand Package project. This mega project is a collaboration between a consortium consisting of LG Energy Solution, LG Chem, Huayou, LX International, Posco Future M, Antam, and Indonesia Battery CoIDRoration (IBC). Finally, Indonesia Pomalaa Industry Park (IPIP) located in Pomalaa, Southeast Sulawesi. IPIP is the first environmentally friendly industrial park with a complete lithium battery production chain invested by Huayou and has been designated as a National Strategic Project (PSN). Steven affirmed, Huayou will bring the entire integrated industrial chain in IPIP. Starting from the development of mining resources, the development of HPAL technology, refining, ternary precursor materials and ternary cathodes, to battery recycling. Image source: ANTARA PHOTOS/Asep FathulrahmanSource: www.industri.kontan.co.id/Huayou Indonesia Akan Bangun Seluruh Rantai Industri Hilirisasi ke Indonesia
