SHANGHAI, Feb. 7 (SMM) - China Hanking Holdings Limited (China Hanking) announced to resume production at its laterite nickel project in Indonesia, the company said in its statement.
According to the statement, PT. Konutara Sejati (KS), a subsidiary of China Hanking, entered into a cooperation agreement with PT. Maha Bhakti Abadi (MBA) on February 6, 2017.
KS has appointed MBA to manage nickel mining, production and trading of nickel commodities from part of KS's nickel mining area of the nickel project.
KS also agreed to sell 100,000 metric tons of nickel ore to an independent third party as buyer at a total consideration of $1 million or $900,000, depending the Buyer whether or not to utilize the port which is owned by an affiliate of KS for transporting the nickel ore.
China Hanking suspended production at the nickel ore project, which located in North Konawe Regency, South East Sulawesi, since early 2014 after Indonesia introduced a ban on ore exports.
The rapid expansion of production capacity of nickel smelting since the ban has stimulated the demand for local nickel ore in Indonesia. In view of the above, the board of directors of the Company (the “Board”) has decided to initiate the preparatory works to resume mining production from the Nickel Project since the first half of 2016, the statement said.