According to foreign media sources, Indonesian Investment Minister Bahlil (Bahlil Lahadalia) said at a hearing of the sixth Committee of the country's parliament on May 31 that Indonesian President Joko has instructed the Investment Ministry to raise the target of investment funds to 120 trillion rupees (about US $8.4 billion, 53.8 billion yuan) in 2022, 30% higher than the target of 90 trillion rupees in 2021.
China's Ministry of Commerce data show that in 2020 ChinaYes
Indonesia is the second largest investor.
Chinese enterprises will invest US $1.98 billion billion in Indonesia's industry-wide direct investment in 2020, up 86.5 percent year-on-year.
What does Indonesia rely on to attract Chinese investors?
Indonesia has high-quality nickel resources, so the metal industry is a relatively heavy industry for Chinese enterprises to invest in Indonesia. In the context of the continued shortage of global nickel ore supply, since this year, many domestic companies such as Ganfeng Lithium, Yiwei Lithium, Glimmer, Qingshan Industrial, Huayou Cobalt, and Zhongwei have successively announced investment in the nickel industry in Indonesia.
Ganfeng Lithium Invests US $15 million in Laterite Nickel Project
On May 28, Ganfeng Lithium Industry announced that the company agreed that Ganfeng International Co., Ltd., a wholly-owned subsidiary of the company, would invest in the payable bonds of Singapore listed company Silkroad Nickel Ltd(SRN) with its own capital of US $15 million, and would use SRN's 100 per cent equity of FE Resources Pte.Ltd, a wholly-owned subsidiary of laterite nickel assets, as a guarantee. Six months after the investment takes effect, the Company has the right to convert 100 per cent of its stake in the convertible debt into 25 per cent of FE's equity. At the same time as the conversion, the Company has the right to increase its shareholding in FE Company to 50% for an additional consideration of US $15 million. If the right is exercised, Ganfeng International will acquire a 50% stake in FE for a cumulative consideration of US $30 million. FE Company holds 100 per cent of the assets of PT Teknik Alum Services, a wholly-owned subsidiary, in its laterite nickel project in Indonesia, which has a laterite nickel ore resource of about 0.1466 billion wet metric tons.
A number of enterprises jointly invested nearly $2.1 billion to build a nickel-cobalt project.
On May 24, Huayou International Cobalt, a wholly-owned subsidiary of Huayou Cobalt, and Yiwei Asia, Yongrui, Glaucous and LINDO, a wholly-owned subsidiary of Yiwei Lithium Energy, signed the Joint Venture Agreement on Indonesia Huayu Nickel-Cobalt Laterite Nickel Ore Hydrometallurgy Project. The parties to the agreement agreed to set up a joint venture in Indonesia to implement the laterite nickel ore hydrometallurgy project, with an annual output of about 120000 tons of nickel metal and about 15000 tons of cobalt products, the total investment in the construction of the project is about 2.08 billion US dollars (13.374 billion yuan).
Zhongwei shares 0.243 billion US dollars to invest in laterite nickel ore
On April 7, Zhongwei shares deliberated and passed the proposal on the signing of a joint venture agreement between its wholly-owned subsidiary Zhongwei hong kong new energy and RIGQUEZA on the 30000 tons (Indonesia) project of laterite nickel ore smelting with an annual output of high ice nickel nickel-containing metal. the wholly-owned subsidiary Zhongwei hong kong new energy and RIGQUEZA signed a joint venture agreement on the project with an annual output of 30000 tons of high ice nickel-containing metal and a total investment of about us $0.243 billion (about 1.6 billion yuan). The first phase of the project plans to produce 10000 tons of nickel-containing metal with high ice, with a total investment of about US $0.081 billion.
Glimmer Increases Holdings in Qingmeibang and Accelerates Nickel Project
On March 23, Glimmer announced that Hong Kong Bump transferred its 15% stake in Qingmeibang New Energy Materials Co., Ltd. and its corresponding rights and obligations to Glimmer Hong Kong, which agreed to transfer 15% of Qingmeibang's equity. In addition, Newstride Limited to sell 100 per cent of the shares of New Exhibition International to Glimmer Hong Kong to indirectly sell 21 per cent of the shares of Qingmeibang, and Glimmer Hong Kong agreed to accept 21 per cent of the shares of Qingmeibang. Upon completion of the transaction, Glimmer Hong Kong will increase its total direct and indirect stake in Tsing Meibang to 72%, becoming the controlling shareholder of Tsing Meibang.
According to the official website, Qingmeibang New Energy Materials Co., Ltd. is located in Qingshan Park, China-Indonesia Comprehensive Industrial Park, Moloway County, Central Sulawesi Province, Indonesia, with a registered capital of US $0.21 billion. It is a globally competitive "resource-material-power battery" whole industry chain company jointly created by multi-party cooperation.
Glimmer also revealed recently that Indonesia's HPAL project with an annual output of 150000 tons of nickel sulfate crystals, which the company cooperates with Qingshan Industry and Ningde Times, is accelerating and plans to complete the construction in 2021 and put into operation in early 2022.
Huayou cobalt nickel project will be completed by the end of the trial production
Huayou Cobalt Industry said on March 15 that the construction of the company's 60000-ton nickel metal hydroxide cobalt wet smelting project in Indonesia is progressing normally and is expected to be completed for trial production by the end of 2021. Previously, Huayou Cobalt invested in Indonesia's nickel hydroxide cobalt hydrometallurgy project with an annual output of 60000 tons of nickel metal and a high-ice nickel project with an annual output of 45000 tons.
Castle Peak Industries to Increase Investment in Indonesia's Nickel Industry
On March 1, Qingshan Industrial signed a high-ice nickel supply agreement with Huayou Cobalt and Zhongwei shares, which will supply 60000 tons of high-ice nickel to Huayou Cobalt and 40000 tons of high-ice nickel to Zhongwei shares within one year starting in October 2021. In July 2020, Qingshan Industrial began to debug and trial-produce high-ice nickel in Indonesia, producing high-ice nickel with a nickel content of more than 75%. The process has been successfully trial-produced at the end of 2020 and is now able to supply a stable high quality of high ice nickel.
Qingshan Industrial said that the company will continue to increase its investment in Indonesia's nickel industry, with an estimated production of 600000 tons of nickel equivalent in 2021, 850000 tons of nickel equivalent in 2022 and 1.1 million tons of nickel equivalent in 2023. The output of high ice nickel and nickel iron will be adjusted according to market demand and price changes.
Ningde era or spend $5 billion to build lithium battery factory
The Deputy Minister of the Ministry of Marine and Investment Affairs Coordination of Indonesia has previously stated that Ningde Times plans to invest US $5 billion to build a lithium battery factory in Indonesia, which will start production in 2024. However, Ningde era did not officially announce the news, Ningde era said that the announcement shall prevail.
A number of foreign enterprises to enter the Indonesian nickel industry
In addition to the above-mentioned Chinese enterprises, there are also a number of foreign enterprises to enter Indonesia. At the end of December last year, the Indonesian Investment Coordination Committee announced the signing of a memorandum of understanding with LG Chem. The agreement includes investment in the entire electric vehicle supply chain, amounting to US $9.8 billion. In addition, Tesla also sent relevant personnel to Indonesia to discuss the possibility of establishing a supply chain cooperation relationship with the Indonesian government, and plans to establish a factory in Batang, central Java, Indonesia.
Since 2009, Indonesia has implemented a series of policies, from encouraging investment in metal refining companies to completely banning the export of unprocessed ore. Indonesia has been committed to attracting foreign investment in the local nickel industry chain. In the future, the policy focus of the Indonesian government will continue to be to promote the transfer of investment to the lower reaches of the mining value chain. According to reports, the Indonesian government will increase investment in the nickel industry and aquatic products used for batteries in Sulawesi and Maluku, Papua will encourage the development of fertilizer production, Kalimantan will develop bauxite and coal gasification, and Java will encourage investment in automobile battery production.
Source: Mining Industry
