China's Ji En Nickel to Raise $928 mln Via Private Placement

Jul. 20 -- China's Jilin Ji En Nickel Industry said on Wednesday that it aimed to raise up to 6 billion yuan ($928 million) via a private placement.

Ji En will issue up to 300 million A-shares and the proceeds will be used to fund its nickel laterite smelting project in Indonesia, the company said in a filing to the Shanghai Stock Exchange.

China is the world's top consumer of nickel, a key ingredient in stainless steel production, and has been increasing nickel ore imports to meet rising domestic demand.

China imported 25 million tonnes of nickel laterite in 2010, half of which was from Indonesia. The company estimated that China's imports of nickel laterite may hit 35-40 million tonnes in 2012.

China has encouraged its nickel smelters to invest in resources overseas to ease domestic supply shortages.