JAKARTA,
INDONESIA - Media
OutReach - 19 January 2022 - Transasia Minerals Ltd, an international
mining company headquartered in Jakarta, Indonesia, today announced its plans
to proceed with developing a nickel processing facility in Morowali, Central
Sulawesi, Indonesia.
The nickel processing facility in
Morowali is slated to complete construction by 2024, following the ruling by
the Indonesian Supreme Court No 122/PK/TUN/2021 on 10 November 2021 to reinstate
the nickel ore mining licenses (IUPs) of Artha Bumi Mining Group. The project
investment is estimated at USD 2 billion, and the facility will focus on the
production of ferronickel and EV battery grade nickel sulphate, a raw material
used to produce EV batteries. With Indonesia moving towards boosting economic
growth and looking to attract foreign direct investment, the nation's abundant
nickel reserves provide a platform to scale up the value-chain and become a hub
for end-to-end battery making.
Research from Fitch Solutions shows tremendous growth opportunities
for nickel production globally, with estimated growth rates of 4 per cent
year-on-year from 2021 to 2030. Indonesia is expected to lead this growth, with
the production of 1.13 million tonnes of nickel by 2025, and growing to 1.29
million tonnes by 2030, with major production sites in Sulawesi and Maluku. A
natural metallic element, nickel sulphate is predominately used to manufacture
items like stainless steel or EV batteries. Demand for nickel has surged in
recent years, thanks to the increased need for electric-vehicle batteries.
Maman Khairussalam, spokesman of Artha Bumi Mining Group says of the
announcement, "We are pleased to proceed with the construction of the facility based
on feedstock of our reinstated nickel ore deposits and look forward to having
the support of TransAsia Minerals. The benefits of the nickel processing
facility will not only increase job opportunities in Morowali, but also further
establish Indonesia as a hub for nickel sulphate export, ultimately giving a
boost to the Indonesian economy."
"We
are excited to work alongside Artha Bumi Mining Group and contribute to the
Indonesian economy and local community," said Pavel Erokhin, CFO of Transasia Minerals Ltd. "The project MOU was first executed in
2016 in Sochi, Russia, during a meeting of Indonesian President Joko Widodo and
Russian President V. Putin on the sidelines of the ASEAN-RUSSIA Summit, and we
are glad to be able to move this project forward. The investment into the
project is a testimony of our commitment to put the nickel industry onto a
global platform and establish the Indonesian nation as a hub for nickel
sulphate export."
The issuer is solely responsible for the content of this announcement.