Vale of Indonesia has signed a framework agreement with Taiyuan Iron and Steel of China and Shandong Xinhai Technology of China for the construction of a nickel-iron plant in Bahadorbi district, Morowali county, central Sulawesi province. The agreement was signed by Febriany Eddy, chairman of Vale of Indonesia, Wei Chengwen, chairman of TISCO, and Wang Wenlong, chairman of Xinhai. Eduardo Bartolomeo, Chairman of Tamsui River, Brazil, and Mark Travers of Vale, Canada witnessed the signing ceremony.
According to the cooperation framework agreement, the joint venture of vale, ticosteel and xinhaijian co., LTD will cooperate in the construction of eight ferronickel rotary kiln electric furnace (RKEF) production line, with an annual output of 73,000 tons of nickel metal and auxiliary facilities. Indonesia's Vale will take a 49 per cent stake, while TISCO and Xinhai will take a 51 per cent stake. The three parties have agreed to abide by the principles of environmental protection and carbon reduction, including that the smelting plant will be powered by a gas-fired power plant.
The three parties agree that the required financial and technical terms will be completed to make a final investment decision six months after the signing of this agreement. At the same time, the three parties will complete all final cooperation agreements.
