Danantara Group Lays Out Nickel Smelting Project in Indonesia

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Indonesian investment group Danantara has announced two major nickel investment plans, including a $1.42 billion agreement with Chinese firm GEM for the HPAL project, a joint venture with Brazil's Vale Indonesia to buildWet smelter with an annual capacity of 66,000 tons of mixed nickel hydroxideGEM has invested$30 millionWith Bandung Institute of Technology (ITB) to build a joint metallurgical laboratory and support the development of the Indonesian Green Industrial Park (IGIP).Expected to create 80,000 jobsThe

There is also the proposed acquisition of the GNI ferronickel plant, which is being considered for capital injection$20 billionAcquisition of PT GNI, a subsidiary of Jiangsu Delong Nickel, with the objective of alleviating the plant's operational difficulties due to the financial crisis of its parent company (current production capacity of only 30%-40%.12 production lines shut down) Experts believe that the HPAL project is of more strategic value, while GNI's acquisition is subject to its legacy debt and the pressure to revamp the production line for RKEF technology.

GNI currently relies onUS$60 million syndicated loanMaintaining medium-term liquidity, with arrears to energy and nickel suppliers to be resolved, Danantara's CEO said both investments are in the due diligence stage, and the final decision will depend on a compliance assessment. The move will strengthen Indonesia's position in the global nickel chain, but needs to balance short-term restructuring risks with long-term benefits.

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