Factbox: China Tsingshan's overseas nickel footprint

Hanwa

09/03/2022 09:04

By Min Zhang and Dominique Patton
    BEIJING, March 9 (Reuters) - A surge in nickel prices to
record levels this week has thrown a spotlight on China's
Tsingshan Holding Group, one of the world's biggest producers of
the metal, and raised concerns about potential impact on its
many overseas investments.
    Privately-owned Tsingshan is China's biggest stainless
steelmaker and has become the world's top nickel producer in
2018 thanks to its pioneering use of low-grade nickel pig iron. 
    The firm started building a short position in the nickel
market last year, leaving it exposed to costly margin calls
triggered by this week's rally in prices.  urn:newsml:reuters.com:*:nL2N2VB0NU
    Shares in companies that have invested in projects with
Tsingshan tumbled on Wednesday, led by state-backed Zhejiang
Huayou Cobalt  603799.SS  which fell by the 10% limit two
sessions in a row.
    Many of Tsingshan's investments are in Indonesia, the
world's second biggest nickel ore supplier.
    Below is a list of its projects in the country. 
     
    * Tsingshan has partnered with Zhejiang Huayou on several
projects. Their joint venture PT Huayue in Sulawesi, together
with China Molybdenum Co  603993.SS , has capacity to produce
60,000 tonnes of nickel and 7,800 tonnes of cobalt per year
using high-pressure acid leach (HPAL) technology.
    The project shipped its first batch of mixed hydroxide
precipitate (MHP) to China earlier this year.  urn:newsml:reuters.com:*:nL1N2UP0FN
    
    * Tsingshan and Huayue also set up a venture called PT
Huashan in Indonesia in February 2021, aiming to produce 45,000
tonnes of nickel matte per year. The project has yet to start
operating. 
    
    * In March 2021, Tsingshan said it had signed agreements to
provide 60,000 tonnes of nickel matte to Huayou and another
40,000 tonnes to CNGR Advanced Material  300919.SZ .
 urn:newsml:reuters.com:*:nL3N2L10VC
    The announcement sent nickel futures prices lower amid
concerns of over supply of battery-grade material. 
    
    * CNGR also plans to make 30,000 tonnes of nickel matte
every year itself in Tsingshan's industrial park on the island
of Sulawesi. 
    The project will be operated by CNGR unit PT ZhongTsing New
Energy, which owns a 70% stake. It was not immediately clear if
the remaining stake is related to Tsingshan.  urn:newsml:reuters.com:*:nL4N2M13FG
    
    * Units of Tsingshan, Huayou and Chengtun Mining  600711.SS 
founded PT Youshan Nickel Indonesia in Weda Bay to produce
34,000 tonnes of nickel matte per year. 
    
    * A Tsingshan JV with Indonesia PT Bintangdelapan Group has
invested in a 50,000 tonne per year nickel project with GEM Co
Ltd  002340.SZ , battery maker Contemporary Amperex Technology
Co Ltd  300750.SZ  and Japan's Hanwa  8078.T . 
    Tsingshan cut its stake in the project by 21% to 10% last
January.  urn:newsml:reuters.com:*:nL1N2JF09H
    GEM said on March 9 that construction and operation of the
project has not been affected by recent nickel market events.
 urn:newsml:reuters.com:*:nL3N2VC0TN
    
    * Tsingshan has also teamed up with Chengxin Lithium
 002240.SZ  to invest $350 million in an Indonesian lithium
project.  urn:newsml:reuters.com:*:nL1N2QQ07D

 (Reporting by Min Zhang and Dominique Patton; Editing by Kim
Coghill)
 ((min.zhang@thomsonreuters.com; (8610) 5669-2105;))