Huayou Cobalt’s hydro-metallurgy project in Indonesia achieved great progress

SHANGHAI, Nov 28 (SMM)—The delivery ceremony of a high-pressure reactor, a core equipment of the hydro-metallurgy project at Huayue Nickel & Cobablt (Indonesia) of Huayou Cobalt & Morimatsu, was held at Morimatsu’s Nantong factory on November 20.  Since then, all four high-pressure reactors have been completed and delivered, marking that the Huayue project is about to enter a new stage of key equipment installation.

In March this year, Huayue Nickel & Cobalt (Indonesia) hydro-metallurgy project started construction. Yao Haijing, deputy general manager of the project, said Indonesia has rich nickel ore resources and Huayou boasts advanced hydro-metallurgy technology. The combination of the two can complement each other's advantages and realize the maximum value.

The Huayue Nickel & Cobalt (Indonesia) project uses the most advanced third-generation high-pressure acid leaching process to extract nickel-cobalt hydroxide from laterite ore, which has multiple advantages such as low costs and environmental protection. The project is a perfect integration of Indonesian resources and Chinese technology. After its commissioning, it will have an epoch-making impact on global nickel production and consumption.

According to the recent third-quarter performance announcement released by Huayou Cobalt, its revenue for the first three quarters of 2020 stood at about 14.84 billion yuan, with a year-on-year growth of 5.82%; net project stood at around 687 million yuan, surging 640.27% on the year; basic earnings per share came in at 0.61 yuan, with a year-on-year increase of 662.5%.

In the first half of this year, Huayou Cobalt operated at full capacity, producing 42,704 mt of electro deposited copper, up 49.54% year on year, 13,510 mt of cobalt products (including entrusted processing businesses), largely unchanged from the same period last year, and 13,004 mt of precursors, rising 95.47% from a year ago. For the same period, the company sold 10,360 mt of cobalt products, and 12,745 mt of precursors, jumping 215.64% year on year.

At present, Huayou Cobalt has built and commissioned 55,000 mt of ternary precursor capacity, and its sales of ternary precursors in the third quarter are expected to stand at 8,000-9,000 mt, with 3,000-4,000 mt for each single month. And sales totalled 21,000 mt in the first three quarters of 2020, compared with 13,000 mt in the same period last year, according to Soochow Securities. The company is expected to sell 60,000-70,000 mt of ternary precursors in 2021 amid recovered domestic demand.