HomeNewsVideos

Building ferronickel plant of IDR 31.27 trillion, VALE to pair up with Chinese companies

07 September 2022 10:29

JAKARTA. A nickel mining company, PT Vale Indonesia Tbk (INCO) has now officially formed a partnership with two China-based companies, namely China Taiyuan Iron & Steel (Grup) Co, Ltd (TISCO) and Shandong Xinhai Technology Co Ltd (Xinhai), to help it build a ferronickel manufacturing plant in Bahodopi Block worth USD 1.2 billion.

Bernardus Irmanto, Director of INCO, claimed that the ownership of this project, worth equivalent to IDR 31.27 trillion, will be split into 47% of VALE and another 51% of TISCO and Xinhai. “TISCO and Xinhai reportedly plan to form another joint venture in Singapore. Said joint venture will be the one that is included in the Bahodopi Project,” he explained in the press conference yesterday (6/9).

Irmanto then also revealed that his company is considering to take loans from banks to cover 70% of the project funding, while asking for shareholders’ equity participation to fill another 30%.

The Bahodopi Block Project is expected to produce ferronickels of 73-80 kilotons per year. It will use LNG as the energy source. (AM/ZH)

© 2024 - IDN Financials - All Rights Reserved.