Chinese stainless steel giant Tsingshan Holding Group has expressed interest in building a US$28 billion integrated ferronickel complex in Tanah Kuning Industrial Park in Indonesia’s youngest province, North Kalimantan.
Industry Ministry’s industrial estate development director general Imam Haryono said Tuesday that the investment would be spent on constructing a ferronickel smelter with a 1.5 million ton capacity per year.
In addition, it could also be used to build other facilities that could annually produce 2 million tons of stainless steel, 10 million tons of carbon steel, 500,000 tons of ferro manganese, 200,000 tons of ferro silicon and 1 million tons of aluminum, as well as a 7,200 megawatt (MW) hydroelectric plant to supply electricity to the complex.
Tsingshan is among the investors keen to invest in Tanah Kuning industrial park in North Kalimantan, which according to official planning will occupy 11,000 hectares.
Other investors include state-owned aluminum producer PT Inalum, which just obtained a location permit to build an aluminum factory, and Chinese aluminum producer PT Borneo Alumindo Prima, which has carried out a feasibility study for its facility development.
All three investors, Iman said, had conveyed their intention to develop 9,000 MW hydroelectric plants near Kayan River.
A limited meeting would be carried out soon to determine the details of the power plants, he added.