Transasia Minerals Ltd has announced plans to proceed with the development of a nickel processing facility in Morowali, Central Sulawesi, Indonesia, with construction of the facility targeted for completion by 2024. With an investment of about $2 billion, the facility will focus on raw materials used to make batteries for electric vehicles: battery-grade nickel iron and nickel sulfate.
This follows the return of Artha Bumi Mining Group's Nickel Ore Mining operation licence (IUP) by the Supreme Court of Indonesia in decision 122/PK/TUN/2021 of 10 November 2021.
As Indonesia strives to increase economic growth and attract foreign investment, the country's abundant nickel reserves provide a platform to improve the value chain, making Indonesia a hub for battery manufacturing upstream to downstream.
Research by Fitch Solutions points to significant growth opportunities in global nickel production, which is expected to grow at 4 per cent a year between 2021 and 2030. Indonesia is expected to lead this growth, producing 1.13 million tonnes of nickel by 2025 and 1.29 million tonnes by 2030, with the main production bases located on Sulawesi and Maluku islands. Nickel sulfate is used to make things like stainless steel or batteries for electric cars. Demand for nickel has soared in recent years because of growing demand for electric car batteries.
20 January 2022 Maman Khairussalam, spokesman for Artha Bumi Mining Group, said he was grateful to Transasia Minerals for its sustainability and support in the construction of the facility. "The benefits of the nickel processing facility will not only increase employment opportunities in Morowali, but also strengthen Indonesia's position as an export hub for nickel sulfate, which in turn will improve Indonesia's economy," he said in an official statement.
Pavel Erokhin, Cfo of Transasia Minerals Ltd, added: "The project was first implemented in Sochi, Russia, in 2016 when Indonesian President Joko Widodo and Russian President Vladimir Putin met on the sidelines of the ASEAN-Russia Summit. We are delighted to finally be able to launch this project, and the investment in this project is a testament to our commitment to putting the nickel industry on a global platform and making Indonesia an export hub for nickel sulfate."
About Quanya Mining Co., LTD
Transasia Minerals Ltd is a privately owned investment company focused primarily on the mining, oil and gas and energy sectors, headquartered in Jakarta, Indonesia, with representative offices in Singapore and South Africa.
About Artha Bumi Mining (ABM) Group
Artha Bumi Mining Group is an Indonesian partnership of several affiliated Mining rights holders operating at Morowali in Central Sulawesi Province, which is estimated to have significant economic nickel deposits.
