Tag: Indonesia

Four Chinese-operated nickel plants at the Indonesian Morowali Industrial Park have temporarily ceased operations following a fatal landslide in February, in a development that will significantly reduce regional demand for sulphur and sulphuric acid. The shutdowns affect facilities run by China’s GEM Co. and its partners, which together account for 30% of Indonesia’s high-pressure acid leaching (HPAL) capacity. The move comes amid heightened regulatory scrutiny. The largest of the four plants, PT QMB New Energy Materials, could remain offline for up to three months.

PT Pupuk Kalimantan Timur (Pupuk Kaltim) says that it has begun work on a revamp to its number 2 ammonia plant. The plant, which was originally constructed in 1984, has a capacity of around 1,500 t/d of ammonia. The revamp, which is being carried out internally by Pupuk Kaltim, aims to improve energy efficiency at the ageing plant and reduce carbon emissions, according to the company. The revamp is expected to extend the plant’s operational life, improve production reliability, and support Indonesia’s long-term fertilizer supply amid rising domestic demand.

Australia’s Nickel Industries is to sell a 10% share of the Excelsior Nickel Cobalt high-pressure acid leach (HPAL) project in Indonesia to South Korea’s Sphere Corp. The $240 million price tag represents a $2.4 billion valuation for the company. Sphere will acquire the stake from Hong Kong-based Decent Resource, while Nickel Industries will retain its 44% stake in the project, according to Nickel Industries.

PT Vale Indonesia Tbk says it has officially received the first two autoclave units for the Pomalaa high-pressure acid leaching (HPAL) project, a key component of the Indonesia Growth Project (IGP) Pomalaa. This delivery marks a critical milestone in preparing Indonesia’s high-tech nickel processing facility for operation. The welcoming ceremony was attended by PT Vale and PT Kolaka Nickel Industry (KNI) management, along with strategic project partners including Indonesia Pomalaa Industrial Park (IPIP), Huayou Southern Construction Command, MCC20, and other stakeholders.

PT QMB New Energy Materials, a major Chinese-owned nickel smelter in Indonesia, is temporarily cutting production due to mounting waste management challenges, according to a 24 November report from local news source Sina, a move expected to temporarily impact regional sulphur demand. The facility, located in the Morowali Industrial Park, will reduce output for at least two weeks as its tailings ponds are nearing capacity while it awaits approval for a new facility. The shutdown may have implications for the sulphur market, as QMB is a major consumer.

The Indonesian government has moved to limit new licenses for nickel projects in an attempt to correct overdevelopment of the industry and the subsequent crash in global nickel prices. The permit restriction applies to new nickel processing companies that produce intermediate products, both with pyrometallurgical (RKEF) and hydrometallurgical (HPAL) technologies. Currently, Indonesia already has 54 nickel processing plants operating, 38 in the construction stage, and 45 are still under planning.

Already a large urea supplier to the region, Indonesia has plans for several new plants to monetise its natural gas resources.

Almost one third of sulphuric acid production, and a much greater share of globally traded acid, comes from smelting of base metal sulphides and the recovery of SO2 from flue gases. Smelter acid production continues to increase, particularly from copper, creating an imbalance in the sulphuric acid market.

Indonesia’s sovereign wealth fund Danantara has signed a heads of agreement with Shenzhen-based GEM Limited to jointly develop a high-pressure acid leach (HPAL) nickel facility with a capacity of 66,000 t/a of nickel. The project carries an estimated value of $1.42 billion. GEM is a global leader in green metallurgy and circular economy solutions, known for its large-scale recycling of electric vehicle batteries and electronic waste.

Indonesia has become the epicentre of the world nickel industry, and is now seeking to raise royalty rates to capture more value from this. Will this impact upon the continuing expansion of HPAL capacity there?