China, Indonesia plan to cooperate on nickel smelter acquisition

The Association of Indonesian Nickel Miners (APNI) said that Danantara, the Indonesian investment authority, is expected to form a consortium with Chinese companies to jointly acquire the nickel smelter assets of PT Gunbuster Nickel Industry (GNI).The acquisition program is still evolving, with Danantara awaiting stakeholder approvals and due diligence, and plans to move forward with mining state-owned parent company MIND ID as the lead partner.Danantara intends to prepare initial acquisition funding of approximately $20 billion, with a further $60 million in syndicated loans to support medium-term liquidity. As of today, GNI remains part of China's JiangsuDelong Nickel(Jiangsu Delong Nickel Industry Co.), which is facing financial problems in China.GNI has more than 20 ferronickel (NPI) lines for stainless steel feedstock production, but almost all of them have been shut down since the beginning of 2024, with only some of the lines remaining in operation, and it is expected that more than 15 lines have been shut down and are close to a complete shutdown. Pendingcreditors' meetingfor new funding, with an expected timeline of August 2025. Located in North Moroteli, Central Sulawesi, the enterprise has an annual capacity of 1.9 million tons of NPI using pyrometallurgical or rotary kiln electric furnace (RKEF) technology and also produces ferronickel for the stainless steel and nickel alloy industries. There were preliminary agreements with PT Aneka Tambang Tbk.(ANTM), a subsidiary of Indonesia's state-owned mining holding company, and Alchemist Metal Industry Pte Ltd to develop smelter operations in North Konawe and North Moroteli.Danantara's CEO confirmed that it is considering the acquisition of GNI as it is part of the country's strategic downstream nickel project and may move forward if it meets investment criteria. Industry ministry officials say GNI is still a subsidiary of Jiangsu Delong and is awaiting a creditors' meeting.