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.
Vale is one of the world's largest producers of iron ore and has the largest deposits of high-quality nickel in Indonesia. Vale Indonesia, a listed company on the Indonesian stock exchange, operates an open pit mine and supporting facilities to produce high-grade nickel ice with a rated annual production capacity of about 75,000 tons.
Xin sea science and technology
It is the pioneer of the integrated model of nickel and electricity in China. With mature experience in the production of nickel and iron, rich experience in the construction of nickel and iron projects and strong technical strength, it has formed an annual production capacity of 1.8 million tons of high nickel alloy, 50,000 tons of aminoacetic acid and 6 billion kilowatt-hours, of which high nickel alloy products account for 30% of the national market share.
Baowu stainless steel industry is China's integrated operation platform, shouldering the global leadership of Baowu stainless steel industry mission. By 2025, China Baowu will take TISCO as the platform to achieve a stainless steel industry scale of 18 million tons. With the leap-forward development during the 14th Five-Year Plan period, the demand for nickel resources in the future will be in the scale of millions of metal tons.
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 the physical smelter will reduce carbon emissions by 60%.
'China is not only a major market for Vale's iron ore and pellets, but also a key partner for us in logistics, blending and innovation,' Mr. Berendor said in his address. We are pleased to see this partnership expand to other countries to bring responsible development to the region. Vale looks forward to all parties working together to achieve common prosperity across national boundaries and language barriers.
Wang Wenguang said that Xinhai Science and Technology has mastered the RKEF technology, which is the most efficient in energy utilization, the best in environmental protection and benefits, and has realized the efficient utilization of energy and ultra-low emissions. Xinhai Technology has the confidence and ability to build the project as a model for the green and healthy development of Indonesia's nickel-iron industry.
In his speech, Chen Derong pointed out that Vale and Xinhai Technology are outstanding enterprises with important influence in their respective industries. He expects that both sides can further participate in the construction of high-quality steel ecosystem in Baowu, China, and jointly build a green, low-carbon, high-tech and efficient steel industry chain. The Indonesian Ferro-Nickel Project combines energy-efficient RKEF smelting technology with green and low-carbon gas-fired power generation technology, and is expected to become a benchmark project for green production in the Ferro-Nickel industry. China Baowu will further increase resources allocation and fully support this project. It is believed that through the sincere cooperation of the three parties, a ferro-nickel project integrating green, high-quality and intelligent products will be built in Indonesia, leading the development direction of the global ferro-nickel industry, and achieving win-win development for all parties and the local people.