Xinxing Ductile proceeding with Stage 2 of Indonesia NPI project
Source: Mysteel
Jul 02, 2018 11:37
Xinxing Ductile Iron Pipes Co, China’s largest ductile pipemaker and headquartered in Wu’an city in North China’s Hebei province, plans to invest $13.47 million towards stage two construction of its nickel pig iron smelting project on Obi Island in East Indonesia’s North Maluku, according to a company post on June 28.
The NPI project is led by PT. Megah Surya Pertiwi (MSP), a joint venture between Xinxing and Indonesia's Harita Group, and aims for a total capacity of NPI in two phases of 760,000 tonnes/year.
Stage two, with a design capacity for NPI of 570,000 t/y, will host four sets of 36MVA Rotary Kiln Electric Furnaces for producing NPI, and two 65-megawatt power plants to ensure sufficient supplies of electricity to the smelter, the report showed.
The project’s partners say they are proceeding with the expansion and new investment, encouraged by the “outstanding performance” of the stage one plant which has a capacity of 190,000 t/y.
The total estimated cost of construction of stage two is $352 million, the company said in the post. As Shenzhen-listed Xinxing is just at the stage of calling for additional investment, when construction might start and when the second stage might be commissioned are unclear, Mysteel notes.
MSP posted good results for 2017, saying its net profit last year reached $12.56 million, while that for Q1 this year reached $2.87 million, the company disclosed.
Xinxing says that thanks to China’s One Belt One Road Initiative, it is enjoying favorable conditions to expand NPI production in Indonesia and at a lower cost, owing to the strategic location of feed minerals.
Xinxing’s partner, Harita Group, has recovered over 4 million tonnes of nickel ore from its mine on Obi Island which has estimated Ni reserves of over 80 million tonnes grading at 1.5%-2.5% Ni, Harita says.
Written by Thea Feng, fengyx@mysteel.com
Edited by Russ McCulloch, russ.mcculloch@mysteel.com
Edited by Russ McCulloch, russ.mcculloch@mysteel.com
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