On December 26, 2025, Chengtun Mining Group Co., Ltd. announced the termination of its investment in the construction of an annual 40,000-tonne nickel matte project (known as the ChengMach project) in the Indonesia Weda Bay Industrial Park. The project, launched in December 2021, had never entered formal production.
On December 2, 2021, Chengtun Mining approved the establishment of a joint venture, PT ChengMach Nickel Indonesia, to serve as the investment vehicle for the nickel matte project.
On August 4, 2022, the company held its Board of Directors' meeting and decided to transfer a 19% stake in ChengMach Nickel to Huayou Holding SG Ptd. Ltd. for USD 190,000. Following this transfer, the shareholding structure of ChengMach Nickel became: Hongsheng International (51%), Extension (30%), and Huayou Holding (19%).
According to the announcement, the decision to terminate the investment was primarily due to changes in market prospects, with the project no longer expected to meet investment expectations. After careful review and consultation with partners, the company decided not to proceed further and will dissolve the joint venture, PT ChengMach Nickel Indonesia.
It is understood that the joint venture had not conducted substantial operational activities since its establishment, with Chengtun Mining only completing preliminary planning and preparation work. The company stated that the termination will not significantly impact its financial condition or operating results and does not involve any breach of contract or compensation liabilities.
Written by Cora Ji, jiruyan@mysteel.com
