SHANGHAI, Dec 23 (SMM) – The Chinese-backed Qingdao-Indonesia comprehensive industrial park in Indonesia kicked off the construction of the first phase of its rotary kiln-electric furnace (RKEF) ferronickel project on December 10.

The first phase of the project, in Morowali of central Sulawesi, will see four 33MVA RKEFs built.

There are a slew of nickel pig iron (NPl) projects in the pipeline in Indonesia, and uncertainty remains around the timing of commissioning of most of the projects. Chinese firms Tsingshan and Delong’s projects would be the major driver of NPI production growth in Indonesia next year.

Indonesia’s NPI production is expected to grow 49% to 530,000 mt of Ni content in 2020, according to SMM’s optimistic forecasts.

About 210,000 mt will flow to stainless steel mills in Indonesia, while most of the rest is likely to be exported to China, where ferronickel plants are set to take a hit from Indonesia’s impending ban on nickel ore exports.