Huayou Cobalt plans to invest $400 mln expanding nickel production capacity in Indonesia

 

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Huayou Cobalt, a leading Chinese supplier of lithium battery materials, said it plans to invest $400 million expanding its nickel production capacity in Indonesia.

Huayou International Mining Hong Kong will pay $200 million to acquire 50.1% of Andalan Metal Industry, a nickel ore processor. Andalan has a plant on Indonesia’s Halmahera island that annually produces 150,000 tonnes of ferronickel materials containing 24,000 tonnes of nickel metal elements.

After the acquisition, Huayou will transform the plant’s production lines to make high-grade nickel matte to ensure supplies for its lithium battery material production in Indonesia. 

In addition, Huayou International Mining will also form a nickel ore deep processing joint venture in Indonesia through a new Singapore unit. Huayou International Mining will indirectly hold a 49% stake in the JV. Huayou will invest $200 million via the JV to build a nickel sulfate production plant in the Weda Bay Industrial Park on Halmahera, with an annual output capacity of 50,000 tons of metallic nickel.