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China Molybdenum to Take Stake in Indonesia Nickel Project

Metal News - Published on Thu, 14 Nov 2019

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Reuters reported that China Molybdenum Co plans to take an indirect 30% stake in an Indonesian nickel project as it looks to increase its exposure to the growing market for battery metals. China Moly will pay about USD 5 million for the stake, but it will also take over investment commitments in the USD 1.28 billion project from the sellers Hong Kong-based private investment firm Newstride Ltd and Indonesia Morowali Industrial Park. After a capital injection of USD 69 million in the Huayue venture, China Moly’s indirect stake will rise to 30%. Zhejiang Huayou will hold 57% through a wholly-owned unit, while Chinese nickel and stainless steel giant Tsingshan Holding Group will have 10% through a subsidiary.

China Moly, which already operates one of the world’s biggest cobalt mines in the Democratic Republic of Congo, said it would initially acquire a 21% interest in the Huayue Nickel Cobalt joint venture, which plans to produce 60,000 tonnes a year of mixed nickel hydroxide cobalt.

The planned Huayue project on the island of Sulawesi is one of a series of Chinese-invested nickel smelting projects in Indonesia, which banned nickel ore exports from 2020 as it seeks to process more resources at home. The plant is one of a number of high-pressure acid leach (HPAL) projects being built in Indonesia that have drawn industry attention due to their low budget projections and short delivery times.

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Posted By : Rabi Wangkhem on Thu, 14 Nov 2019
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