SHANGHAI, Jun. 19 (SMM) – Chinese nickel ore traders and NPI producers are becoming high enthusiasm in building NPI plants overseas after Indonesia introduced the ore export ban. However, the fact of high investment costs and long building period for overseas projects should be highly watched, Shanghai Metals Market understands.
It was reported on June 17 that China's Zhejiang Baoli Mining signed an agreement with PT Cakra Mineral Tbk to build a ferronickel smelter in Indonesia.
The project will employ blast furnace to produce 40,000-45,000 tonnes of high-grade NPI annually, and production will materialize in mid 2015 by optimistic estimation, the person familiar with the matter said.
Start-up date of the project may not be so quick, however. It will take 2-3 years at least to build NPI plants in Indonesia, according to SMM survey of the development of project building overseas.
Since Indonesia’s export ban on unprocessed ore, many domestic producers said to develop NPI plants in Indonesia, including Ningbo Brillimetal Mineral Co., Zhenshi Group, Guangqing Nickel Industry Co.