Nickel giant Tsingshan Holding Group Co., owned by billionaire Xiang Guangda, is reportedly in talks to sell some of its Indonesian stainless steel assets to China Baowu Steel Group Corp, as part of a strategic review to people familiar with the negotiations. State-owned Baowu, the world’s largest producer of crude steel, is likely to take control of part of the Tsingshan integrated production line at the Morowali Industrial Park in Central Sulawesi, Indonesia.
Discussions began in April and the assets for sale include stainless steel and nickel pig iron production facilities. According to one of the people, the deal could go from $3 billion to $4 billion, adding that terms are subject to change. The two sides have already agreed on several key terms and are currently discussing details such as operation and sale after the acquisition, it said.
Indonesia may impose a tax on nickel exports this year, President Jokowi said, as the biggest producer of the electric-vehicle battery metal looks to refine more at home. The world’s dramatic shift to electric vehicles is driving a surge in demand for battery metals such as nickel, lithium, and cobalt.
Indonesia has benefited from higher prices for nickel, which is also used to make stainless steel, but Jokowi hopes the country will expand its chain of electric vehicle supply. After all, he wants to stop exporting all goods. Indonesia wants to create more value locally to increase government revenue and create more job opportunities, Jokowi said.
Meanwhile, the Minister of Investment and head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, ensured that the downstream of mining products by Freeport Indonesia (PTFI) is on track. Activities include the construction of a new smelter project at Gresik.
According to Bahlil, the copper smelting facility by PTFI in Gresik—carried out through PT Smelting (PTS)—has made 32 shipments since the start of its operation in January 2022. 8,600 tons of copper concentrate were loaded onto a container ship.
“So that this transportation can also create multiplier effects that benefit the community, especially those around PTFI’s operating areas in Papua,” he said.
Bahlil, and his party reviewed the concentrate processing plant in the Grasberg area owned by PT Freeport Indonesia (PTFI) in Mimika Regency, Papua, on Tuesday.
During the visit, Minister Bahlil and his entourage witnessed firsthand the Elloco 09 Locomotive, which transports the concentrate in the Grasberg Block Cave Unloading Station 601, which is located at GBC Haulage 2760 Level.
“What first surprised me was witnessing the technology that was built, thereby also believing that many people still do not understand in detail regarding the mining technology applied at Freeport, particularly in terms of the underground mine,” Bahlil told to local press.
