An Indonesian minister said that Fortescue Metals Group and China's Tsingshan Holding Group may invest billions of dollars to build an industrial zone for metal smelting near a planned hydropower station on the island of Borneo.

The two companies have been negotiating on the project since the beginning of 2021. The Minister of Maritime Affairs and Investment Luhut Pandjaitan stated that the smelting of iron, nickel and copper ore at the estate may begin as early as 2023.

A slide shown by Luhut in a speech on Tuesday showed that Fortescue may invest US$12 billion, while Qingshan has the "potential" to invest US$30 billion. The minister said: "Including the dam, the total investment will reach 100 billion U.S. dollars and will be completed within 10 years," adding that construction is planned to start in October.

In September 2020, Fortescue Future Industries (FFI), a subsidiary of Fortescue, signed an agreement to conduct a feasibility study on the use of Indonesia’s hydropower and geothermal resources for industrial operations, potential domestic supply and export. Julie, CEO of FFI Shuttleworth said in the e-mail to go.

FFI has been announcing ambitious global green energy plans, mainly through green hydrogen. It plans to fund most of its projects outside of its balance sheet, and invests approximately $1 billion in its own funds each year. "FFI is already conducting research on potential projects in Kalimantan, and we look forward to continuing to actively engage with local stakeholders," an FFI spokesperson said. Tsingshan has invested heavily in Indonesia, from industrial parks to stainless steel processing.

Indonesia, the largest nickel producer, has made ambitious plans to begin processing its abundant supply of laterite nickel ore for lithium batteries, and eventually become a global center for the production and export of electric vehicles (EV).

Keywords: international engineering news, foreign engineering project information

Miners and electric vehicle companies are keen to ensure that their battery supply chains meet green standards and are hesitant to invest in coal-powered projects, and Indonesia’s nickel smelters usually rely on coal. The new metal smelter will be located near the 11,000 MW Kayan Hydropower Project in North Kalimantan on the island side of Borneo, Indonesia.Editor/Baohongying