Tsingshan’s Subsidiary Becomes Indonesia’s Top Nickel Producer

Indonesia’s nickel industry landscape has been changing rapidly in the last four years. In 2014, PT Vale Indonesia Tbk (INCO) controlled 77 percent of nickel production, followed by PT Aneka Tambang Tbk (ANTM) at 19 percent. However, since 2018, PT Indonesia Morowali Industrial Park (IMIP) has been controlling half of Indonesia’s nickel sales, while Vale Indonesia and Antam’s market shares have shrunk to 22 and seven percent, respectively. Meanwhile, PT Virtue Dragon Nickel Industry has an 11 percent market share.

IMIP is a joint venture between Tsingshan Steel Holding from China, holding a 66.25 percent stake, and local company PT Bintang Delapan Mineral, owning the remaining 33.75 percent stake. For the record, IMIP built its first ferronickel smelter through its subsidiary, PT Sulawesi Mining Investment, in Bahodopi, Central Sulawesi, with a capacity of 300 thousand tons per year. The second ferronickel smelter was built by IMIP's another subsidiary, PT Indonesia Guang Ching Nickel and Stainless Steel Industry, with a capacity of 600 thousand tons per year. "So, almost 70 percent of nickel mines are controlled by foreign companies," Alpha Research Database researcher Ferdy Hasiman revealed in a written statement on Friday (9/17).

He argued that the dominance of foreign companies in the nickel mining sector put the country's natural resource sovereignty at stake. Moreover, the nickel industry may grow rapidly following the global development of electric vehicles. "Indonesia should not rely on foreign companies in developing electric vehicles. ANTM should contribute the most to the electric vehicle policy," he said.