On June 24, the cooperation framework agreement (PCFA) on the construction and operation project of bhadobi nickel-iron in Indonesia was signed simultaneously in Shanghai and Jakarta, Indonesia. China Baowu Steel Group, Vale Indonesia and Sinhai Technology will join forces to build and operate the Ferro-Nickel project in Morowali County, Central Sulawesi Province, Indonesia. Mr. Chen Derong, Chairman and Party Secretary of Baowu, Mr. Berendor, CEO of Vale, and Mr. Wang Wenguang, Chairman of the Board of Directors of Xinhai Technology attended the signing ceremony and delivered speeches. Wei Chengwen, General Manager of TISCO Group, Wang Wenlong, Chairman of Xinhai Technology, and Faibriani Addy, CEO of Vale Indonesia signed the framework agreement on behalf of the three parties respectively.
Under the agreement, TISCO and Xinhai will initially set up a Chinese joint venture, followed by a joint venture with Vale Indonesia, in which Vale holds a 49 per cent stake. The project includes eight RKEF smelting lines and other supporting facilities, and is expected to produce 73,000 tons of nickel per year. The project will use a natural gas power station to power the smelter and reduce carbon emissions by 60% in the physical smelter.
Before the signing ceremony, Chen Derong and Boandor had an exchange. During the exchange, Chen Derong pointed out that last year, China Baowu crude steel output exceeded 100 million tons, and plans to further increase capacity in the future. We hope that the supply capacity of Vale will also continue to increase to meet the development needs of Baowu in China. He stressed that China Baowu has set a goal of becoming carbon neutral by 2050, which presents great challenges as well as great opportunities. We would like to thank Vale for joining the Global Low Carbon Metallurgy Innovation Alliance initiated by Baowu, China, as one of the founding members, to contribute to the community with a shared future for mankind. We hope that the cooperation project between the two sides can be further promoted steadily.
Berendor congratulated China Baowu on its performance and said that Vale will continue to work hard to increase production capacity to meet the needs of China Baowu's development. At the same time, in order to actively deal with global warming, Vale is also looking for low-carbon development cooperation opportunities around the world and hopes that the two sides can further strengthen cooperation.
Chief engineer of China Baowu, assistant general manager, general counsel, chief engineer of Xinhai Technology, executive vice president of Vale base metals business, executive vice president of ferrous metals business attended the ceremony. The relevant personnel from China Baowu Iron and Steel Industry Center, Strategic Planning Department, Overseas Department, Legal Department, Ni-ferro Project Team and Xinhai Technology attended the signing ceremony.
