Russia is set to invest USD 3 billion to build a nickel smelter in Halmahera Island, eastern Indonesia. According to Indonesian Chief Economic Minister Hatta Rajasa, the construction is to commence in the first half of 2011. The nickel cannot be simply extracted and exported; according to Indonesia’s new mining and coal law, miners must carry out a minimum amount of processing first. Indonesia currently produces ferro-nickel from three nickel smelters operated by Aneka Tambang and nickel-in-matte from smelters operated by PT Inco Tbk, a unit of Brazil’s Vale.
