The company is also acquiring stake in Chinese battery materials producer B&M
The investment marks Huayou’s third battery nickel smelting project in Indonesia. (Credit: Martina Janochová from Pixabay)
China’s Zhejiang Huayou Cobalt has announced that it will invest in a venture formed with EVE Energy and others for a $2.08 billion nickel and cobalt project in Indonesia.
The company will hold a 20% stake in the Indonesian venture, called PT Huayu Nickel Cobalt, while EVE will own a 17% stake.
The other partners include Yongrui Holdings with 31%, Glaucous International with 30% and Lindo Investment holding the remaining stake of 2%. Yongrui is wholly-owned by Yongqing Technology, a subsidiary of Tsinghan.
The investment marks Huayou’s third battery nickel smelting project in Indonesia.
Currently, Huayou is a partner to Tsingshan and China Molybdenum in the Huayue nickel and cobalt project on the island of Sulawesi.
Expected to produce 120,000 tonnes of nickel and 15,000 tonnes of cobalt annually, the new project will be located at Weda Bay on Halmahera island.
Huayou is already a partner to Tsingshan Holding Group in a nickel sulphate project at the island.
Separately, the company has announced to invest $210m to acquire stake in Chinese battery materials producer Tianjin B&M Science and Technology (B&M), Reuters reported.
Huayou will acquire a 38.62% stake in the company from Hangzhou Hongyuan Equity Investment.
In November last year, Nickel Mines signed an agreement with partner Shanghai Decent Investment to acquire a 70% stake in the Angel nickel project in Indonesia for $490m.
The project was planned to be commissioned no later than 16 October 2022.
Shanghai Decent had also agreed to purchase the nickel pig iron (NPI) product produced at Angel Nickel at market price.