Indonesian Morowali Industrial Park (IMIP)
Having commenced construction in late 2013, Tsingshan has now established industry recognised infrastructure and operational facilities at the IMIP.
Across 20 existing RKEF lines, the IMIP has a current production capacity of 1.5 million tonnes per annum of NPI and 600,000 tonnes per annum of high carbon ferrochrome. However, in order to increase its stainless steel output to targeted levels of 3.0 million tonnes per annum, NPI production requirements are expected to increase to approximately 1.95 million tonnes per annum, facilitating the requirement for additional RKEF lines within the IMIP.
The IMIP currently comprises:
· 2.0Mt pa stainless steel capacity (currently expanding to 3.0Mt pa);
· 0.5Mt pa carbon steel capacity (currently expanding to 3.5Mt pa);
· 0.6Mt pa high carbon ferrochrome;
· 1.5Mt pa NPI capacity (likely expanding to 1.95Mt pa);
· 1.26GW coal-fired power plant (currently expanding to 1.96GW);
· Lime plant, coke plant, acid plant;
· Port facilities;
· Executive guest quarters; and
· An executive visitors’ hotel.
The development of the IMIP and its competitive operational cost structure is underpinned by several factors:
· The ability to source an abundance of higher grade (>1.8% nickel grade) nickel ore which is now restricted from export from Indonesia as a result of the Indonesian Government’s ban on the exportation of unprocessed nickel ore under a grade of 4% nickel.
· The generation of competitive electricity costs by the IMIP’s purpose-built 1.26GW power plant which is powered by domestically sourced thermal coal.
· The vertically integrated nature of operations within the IMIP to produce a stainless steel end product, utilising the key raw material inputs, including nickel ore and power.