Huayou Cobalt announced yesterday that the company plans to sign an amended and restated joint venture agreement with PT Vale Indonesia Tbk, Ford Motor Company and KNI. According to the announcement, the parties intend to construct KNI's 120,000 tonnes per annum (nickel metal weight) nickel cobalt hydroxide wet process project in Indonesia as a joint venture.
The total investment for the project is specified as approximately US$3,842 million based on the feasibility study. This scale of investment is expected to achieve a capacity of 120,000 tonnes per annum (nickel metal weight) of nickel cobalt hydroxide products to provide sufficient nickel cobalt feedstock to meet the global demand for sustainable energy.
Huayou Cobalt said the co-operation is based on a previous co-operation framework agreement between the company and Vale Indonesia, on which Ford Motor was introduced as an important partner. Huayou Cobalt said the proposed joint venture agreement with Vale Indonesia and Ford Motor will help give full play to the strengths of all parties and jointly promote the development and construction of the limonite project at the Pomalaa mine.
The limonite project at the Pomalaa mine is an important co-operation project between Huayou Cobalt and Vale Indonesia. In April last year, Huayou Cobalt announced that the company and Vale Indonesia planned to carry out a co-operation project to process limonite ore from Vale Indonesia's Pomalaa (hereinafter referred to as Pomala) mine.2022 In July, Huayou Cobalt further announced that on the basis of the previous co-operation framework agreement reached between Huayou Cobalt and Vale Indonesia, it would bring in Ford as an important partner.
Huayou Cobalt said that the proposed joint venture agreement with Vale Indonesia and Ford Motor will further clarify the content and responsibilities of the cooperation between the parties. According to the announcement, the parties will jointly build KNI's 120,000 tonnes per year (nickel metal volume) nickel cobalt hydroxide wet process project in Indonesia. The project will make full use of each party's advantages in resources, technology and market to achieve effective use of resources and sustainable development of the industry.
For Huayou Cobalt, the co-operation will not only help enhance the company's competitiveness in the global new energy market, but will also further consolidate its influence in the Indonesian market. Meanwhile, through the co-operation with Ford Motor and other globally renowned companies, Huayou Cobalt's technical strength and market position will also be enhanced.
For Vale Indonesia, the co-operation will help the development and expansion of its mining business in Indonesia. At the same time, through the co-operation with Huayou Cobalt and Ford Motor, Vale Indonesia will further consolidate its influence in the global new energy market.
For Ford Motor, the co-operation will provide a stable supply of nickel and cobalt raw materials to meet its global production demand. At the same time, through the cooperation with Huayou Cobalt and Vale Indonesia, Ford will further expand its share of the global new energy market.
Overall, the 120,000 tonnes per annum nickel-cobalt hydroxide joint venture between Huayou Cobalt, Vale Indonesia and Ford Motor will help to enhance the competitiveness of all parties in the global new energy market, and will further promote the development of Indonesia's mining and new energy industries. We look forward to seeing more progress and results from this project in the future.
[Source - CJN]
