China’s Chengtun Mining Group Co Ltd said that it would invest USD 245M in a project to make nickel matte in Indonesia as a raw material for electric vehicle (EV) battery chemicals.
The venture, known as PT ChengMach Nickel, will produce 40,000 tonnes per year of nickel matte on a metal content basis. Chengtun unit Hongcheng International will hold 70% equity, with the remainder held by a Singapore-registered company called Extension Investment Pte.
Total investment is pegged at USD 350M, including Extension’s share.
The venture will be Chengtun’s second nickel matte project in Indonesia, with a capacity of 34,000 tonnes per year, will be located in Weda Bay on the island of Halmahera.
Nickel matte, an intermediate product that can be further processed into battery-grade nickel sulfate, is growing in popularity among Chinese investors in Indonesia.