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National Development and Reform Commission on October 26 gave permission to Chinese investment to build a 300,000 tonnes ferronickel project in Indonesia by Shanghai Decent Investment (Group) Co.,Ltd and Fujian Dingxin Industries Co., Ltd, paving the way for raw material supplies for China’s stainless steel producer Tsingshan Holding Group.

Shanghai Decent Investment (Group) Co.,Ltd and Fujian Dingxin Industries Co Ltd are subsidiaries of Tsingshan Holding Group.

The USD 640 million dollars worth investment is located in Morowali, Central Sulawesi in Indonesia, where the country has the most ample nickel reserves and annual output of more than 6 million tonnes. The location is also quite close to railway and port facilities.

The project is expected to produce around 3 million tonnes of laterite nickel ore and to produce 300,000 tonnes of ferronickel each year with ni content at 11%.

The investment, considered a national project between China and Indonesia, wins support from ministries in Indonesia