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1.6Billion USD- CGGC Signed A Contract for the Mining and Transportation of Laterite Nickel Ore in Indonesia
Date:2020-08-25 VisitCount: Font size:[ L M S ]
On August 18, CGGC International and Indonesia’s PT.OTI EYA ABADI Mining Company signed a contract for the mining and transportation of laterite nickel ore in Morowali County of Sulawesi, Indonesia, with the contract value of US$160 million, realizing a new breakthrough in the Company's mining sector and advancing the rolling development of the Indonesian market.

Scene of the signing

The Project is located in Morowali County, Central Sulawesi Province, Indonesia,  83.7km away from Morowali Airport, and 296km away from the Kendari City by highway. The total area of mining is about 3,339 hectares, and the laterite nickel ore reserves are about 30 million wet tons. The owner entrusts the Company to perform the mining and transportation services. The annual mining and transportation volume is 5 million tons and the contract period is 4 years. The scope of the Project mainly includes mine surface cleaning, overburden stripping and mineral material stripping, excavation, loading, transshipment, land transportation, loading and unloading from wharf to barge or storage yard, and road maintenance during construction period.

Project location

In recent years, with the implementation of Indonesia's export ban on raw ore and the increasing number of domestic nickel ore production lines in Indonesia, the smelting and processing of laterite nickel ore has become a new blue ocean in the market, and its market prices have continued to rise. According to survey data of the local market in Indonesia, the demand for laterite nickel ore in Indonesia in 2020 will be nearly 100 million wet tons, and the annual demand for nickel ore will increase year by year in the next five years. The Company has successfully won the bid at the most competitive price through open bidding with its strong performance and excellent technical solutions.
Since entering the Indonesian market in 2006, the Company has undertaken a number of Indonesian national strategic projects such as the Asahan I Hydropower Station, the Takara Coal-fired Power Station, and the Babibalu Coal-fired Power Station, which contribute to the economic and social development of Indonesia and the China-Indonesia economic and trade development. Among them, the Takara Coal-Fired Power Station Project won the "Excellent Performance Award" and the "Best Completion Award" issued by the Indonesian National Power Corporation. During the special period of the COVID-19 outbreak, CGGC, while coordinating the prevention and control of the pandemic and its production and operation, also donated 200 million IDR as special funds through the Indonesian National Power Corporation to strengthen the local anti-pandemic material reserves, which greatly demonstrated Chinese enterprise’s responsibility, being widely praised by the local government and people.

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