What is the current situation of Chinese companies investing in Indonesian nickel iron in clusters?

　　2017 was a year of abundant nickel and iron production, especially for Chinese nickel companies investing in Indonesia. As of the end of August this year, Chinese companies have invested in the construction of nickel iron smelting projects in Indonesia, with a production capacity of 2.838 million tons per year and a construction capacity of 1.86 million tons per year. The total production capacity is 4.7 million tons per year.

　　Progress of nickel smelting projects in China

　　After Indonesia implemented a ban on nickel ore exports in January 2014. Chinese companies have intensified their efforts to establish nickel smelters in Indonesia to meet the growing demand for nickel pig iron in China's stainless steel industry.

　　Distribution of Chinese nickel smelting enterprise projects in Indonesia

　　Qingshan Iron and Steel

　　Since the start of the first phase of the SMI nickel iron and its supporting projects on July 16. 2013. it has only taken four years for SMI Steel to build a small fishing village in Sulawesi into a new industrial base that integrates nickel mining, nickel iron smelting, chromium iron smelting, stainless steel smelting and continuous casting, and stainless steel hot rolling and washing, with an annual production capacity of nearly 3 million tons of stainless steel.

　　Indonesia Qingshan Industrial Park (IMIP)

　　Qingshan Iron and Steel was founded in 1992 and has now become a multinational company that started in Wenzhou, crosses the country, and goes global; It has three major groups under its jurisdiction: Qingtuo Group, Shanghai Dingxin Group, and Qingshan Holdings. In 2016. Qingshan Iron and Steel achieved a stainless steel crude steel production of 5.8 million tons, a sales output value of 102.8 billion yuan, and more than 30000 employees.

　　Delong Nickel Industry

　　In January 2014. Jiangsu Delong Nickel Industry was approved to invest in the construction of a nickel iron alloy smelting project with an annual output of 1.1 million tons in Kendari City, Sulawesi Province, Indonesia. Currently, the first phase of the project has put into operation a nickel iron smelting plant with an annual output of 375000 tons. Delong Nickel Industry has reasonably solved the problem of obtaining nickel ore resources and effectively solved its own bottleneck in capacity expansion by investing and establishing factories abroad through "going global".

　　Indonesia Delong Nickel Industry, Kendari City, Sulawesi Province

　　Jiangsu Delong Nickel Industry Co., Ltd., registered in July 2010. was established by Dai Guofang, the former owner of Tieben. Jiangsu Delong Nickel Industry invested 2 billion yuan in the first phase, which began production in 2011. and the second phase began production in July 2012. In order to form an integrated industrial chain, Delong Nickel Industry also invested in a stainless steel hot rolling project with an annual output of 3 million tons, forming a complete industrial chain of importing laterite nickel ore from Indonesia to produce nickel iron alloy, and then producing stainless steel using nickel iron alloy.

　　Emerging cast pipes

　　The core enterprise of Xinxing Jihua Group, Xinxing Cast Pipe Co., Ltd., has formed a joint venture with Indonesia's Halida Group to establish PT MSP Company invested in the construction of an annual output of 190000 tons of nickel iron project, which officially started construction on August 25. 2015. The Obi Island (OBI) nickel iron project in Indonesia is jointly invested and constructed by Xinxing Cast Pipe (China), Singapore CI Company, and Indonesia Halida Mining Company. The project is located on Niobi Island in North Maluku Province, Indonesia. The first phase of the project has three production lines that have been put into operation on schedule.

　　Indonesia PT MSP Company

　　Xinxing Jihua Group, formerly known as Xinxing Cast Pipe Group, was formed from the original production department of the General Logistics Department of the Chinese People's Liberation Army and the reorganization of military enterprises and institutions under its jurisdiction. At present, as a state-owned enterprise supervised by the State owned Assets Supervision and Administration Commission of the State Council, it is a large state-owned sole proprietorship company that integrates asset management, capital operation, and production and operation, and is a Fortune Global 500 enterprise.

　　New Hualian Group

　　New Hualian's subsidiary, Indonesia's New Hualian Nickel Industry (MND), and Indonesia's Central University Resources (Tbk) have established a joint venture subsidiary PT Macrolink Omega Adiperkasa (MOA), with New Hualian holding 60% of the shares and Central University (one of Indonesia's three listed nickel mining companies) holding 40% of the shares. The nickel iron project is located in Pajukukang Industrial Park, Bantan County, with a design scale of producing 100000 tons of nickel iron annually. The project reached full production capacity in 2017.

　　PT Macrolink Omega Adiperkasa, Pajukukang Industrial Park, Bantan County

　　Xinhualian Group was founded in October 1990 and has become a large modern enterprise group covering multiple industries such as cultural and tourism real estate, mining, petroleum, chemical, investment, finance, ceramics, and liquor. In 2016. the total assets of the enterprise exceeded 99 billion yuan, and the annual operating income reached 71.898 billion yuan. At present, the group has more than 90 wholly-owned, controlling, and joint-stock enterprises, and owns 14 well-known Chinese trademarks such as "Jinliufu Liquor", "Hualian Ceramics", and "Shangri La • Zangmi". The comprehensive strength of the enterprise has been listed in the top 500 Chinese enterprises and the top 100 Chinese private enterprises for 13 consecutive years.

　　Dongfang Special Steel

　　In order to strengthen its overseas resource layout, Zhenshi Group invested in the acquisition of FBLN Company in Gebe Island, North Maluku Province, Indonesia in 2010. and also invested in the acquisition of equity in another laterite nickel mining company on the island in 2013. At this point, the group has a mining area of 2208 hectares, with reserves of over 70 million tons of laterite nickel ore containing more than 1.8% nickel, and a mining period of 25 years. In 2013. the group invested in the construction of an annual production of 80000 tons of nickel iron smelting project for FBLN Company in Indonesia. The first phase involved the construction of four blast furnaces. After the project was put into operation, a total of 54600 tons of nickel iron have been transported back.

　　Indonesia FBLN Company

　　Zhenshi Group Co., Ltd. is located in the Economic Development Zone of Tongxiang City, Zhejiang Province, and was founded in 1971. The business scope of the holding company under the company covers a strategic pattern of diversified development in special steel, real estate, hotels, fiberglass products, and composite materials, with asset market value exceeding 6 billion yuan. It is a group joint-stock company that emphasizes both investment and industry.

　　Jinchuan Group

　　The WP&RKA laterite nickel mine project in Indonesia, invested by Jinchuan Group, is located on Obi Island in North Maluku Province. The project adopts the most advanced fully enclosed, energy-saving and environmentally friendly RKEF smelting process, with an annual processing capacity of 1.7 million tons of ore and 300000 tons of nickel iron. It was completed and put into operation by the end of 2018.

　　The groundbreaking ceremony of WP&RKA laterite nickel mine project in Indonesia

　　Jinchuan Group is a large state-owned enterprise controlled by the People's Government of Gansu Province, and is a joint venture of non-ferrous metallurgy and chemical industry supporting mining, selection, and smelting. We mainly produce nickel, copper, cobalt, and platinum group precious metals. The company produces 150000 tons of nickel annually. Nickel metal production accounts for over 90% of China's total, making it the largest nickel production enterprise and known as the "Nickel Capital" of China. Nickel production ranks fourth in the world.

　　Taiwan Yilian Group

　　On the morning of August 4. 2017. China 20th Metallurgical Group won the bid for the overall planning and feasibility study services for the financing of a 1.2 million ton stainless steel steel plant produced annually by Yilian Group Indonesia EFI Company. This design service was jointly tendered by China 20th Metallurgical Group Corporation and MCC Huatian.

　　MCC President Zhang Mengxing Meets with Visiting Chairman Li Bixian of Yilian Group Indonesia

　　Yilian Group Indonesia is building a steel base in Morowali County, Central Sulawesi Province, Indonesia. The plan is to establish a stainless steel plant with an annual output of 1.2 million tons and supporting projects. The investment and construction will be divided into three phases. The laterite nickel ore extracted from the self owned mineral sources near the base is used to supply nickel iron process smelting. The produced nickel iron is all hot sent to the stainless steel plant for impurity removal treatment before use. The stainless steel plant produces stainless steel flat and square billets.

　　Trucks load raw nickel ore near Sorowako, Sulawesi Island, Indonesia

　　With the increase in investment from Chinese stainless steel companies, China has become the largest source of investment in mining, smelting, and mineral processing in Indonesia. Investment is also extending downstream in the industry chain. With the construction of new steel plants and the continuous expansion of stainless steel processing capacity, it means that large investments from China are expected to make Indonesia surpass India (with a stainless steel production of 3.32 million tons in India in 2016) and become the world's second largest stainless steel producer after China!