Chinese high-tech enterprise Huayou Cobalt to invest in 50,000t/yr nickel sulfate project in Indonesia

This aerial photo taken on June 28, 2023 shows a 16-megawatt wind turbine installed at the Fujian offshore wind farm operated by the China Three Gorges Corporation off the coast of southeast China's Fujian Province.(Xinhua/Lin Shanchuan)

Chinese listed company Huayou Cobalt (603799.SH) announced on Tuesday that it intends to develop a nickel sulfate project with an annual output of 50,000 tonnes in Indonesia.

The company will join Strive InvestmentCapital Pte. Ltd. (Strive) and Lindo InvestmentPte. Ltd. (Lindo) through its wholly-owned subsidiary Huayao International Investment Pte. Ltd. (Huayao) to establish PT Huaxiang Refining Indonesia (Huaxiang Refining) to run the project. 

Located in the Indonesia Weda Bay Industrial Park, the project is expected to involve total investment of nearly 200 million US dollars, according to the announcement.

Up to now, Huayao and Lindo each hold 98 percent and 2 percent of the equity in Huaxiang Refining respectively. Huayao intends to transfer 49 percent of its equity to Strive, and after the equity transfer, Huayao, Strive and Lindo will each hold 49 percent, 49 percent and 2 percent of the equity respectively.

Huayou Cobalt stated that this foreign investment aligns with the surging lithium battery materials demand in the development of the new energy vehicle industry, and it conforms to the changing trends in the global market. It will be beneficial for further enhancing the company's profitability and sustainable development.

(Edited by Tian Shenyoujia, tianshenyoga0524@163.com)