By Dominikus
Nanjing Hanrui Cobalt Co., Ltd. has postponed the commissioning of its nickel smelting project in Indonesia to March 31, 2026, citing delays in obtaining administrative permits and complex geological conditions at the project site.
The smelter, being developed by its majority-owned subsidiary PT Hanrui Nickel Indonesia, is located within the Indonesia Huabao Industrial Park in Bungku Barat District, Morowali Regency, Central Sulawesi.
According to his report released last week, Liang Jie, Chairman of Hanrui Cobalt, said the project has not progressed as originally planned due to prolonged approval processes and increased scope of preliminary work caused by challenging terrain. The project was initially scheduled to commence operations in May 2025, resulting in a delay of about ten months.
The facility will employ an oxygen-enriched continuous blowing process and is designed to produce 20,000 metric tons of nickel metal equivalent in high-grade matte per year.
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As of the end of 2024, the company had invested approximately RMB 112.38 million into the project, which accounts for around 7% of the total estimated project budget. The full investment is projected at approximately RMB 1.61 billion, or US$243.2 million equivalent.
The project is implemented by PT Hanrui Nickel Indonesia, a joint venture owned 70% by Hanrui Cobalt (Hong Kong) Investment Co., Ltd. and 30% by Huaxin Investments Limited.
The Indonesian government has granted PT Hanrui Nickel Indonesia a corporate income tax exemption for seven years following the commencement of commercial production, along with a 50% income tax reduction for an additional two years thereafter.
Despite the delay, the company views the project as a core component of its strategy to deepen its presence in the nickel sector and expand its position within the global electric vehicle battery supply chain.
Editing by Reiner Simanjuntak
