Active Mixed AidData Chinese Aid

China Eximbank provides $320 million syndicated overseas investment loan for Phase 4 of Sulawesi Mining Power Station Project in Morowali Industrial Park (Linked to Record ID#66200, #66207, #66216, #69488)

$320M USD

Funder	Export-Import Bank of China (China Eximbank)
Recipient Organization	PT. Indonesia Ruipu Nickel And Chrome Alloy
Country	Indonesia
Start Date	Feb 28, 2017
End Date	Apr 01, 2026
Duration	3,319 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`85817`

Grant Description

China Eximbank contributes to $460 million syndicated overseas investment loan for Phase 4 of Sulawesi Mining Power Station Project in Morowali Industrial Park On February 28, 2017, China Eximbank's Zhejiang and Shanghai Branches, PT.

Indonesia Ruipu Nickel, and Chrome Alloy (IRNC) -- a special purpose vehicle and joint venture of Tsingshan Holding Group (70% ownership stake), Ruipu Technology Group Co Ltd (20% ownership stake), and Indonesia Morowali Industrial Park (10%ownership stake) -- signed a $320 million syndicated loan agreement for Phase 4 of the Sulawesi Mining Power Station Project in Morowali Industrial Park.

The purpose of the project was to construct a high-carbon ferro chrome and stainless steel cold rolling plant, occupying 40 hectares with an annual output of 600,000 tonnes of high-carbon ferro and 700,000 tons of stainless steel cold rolls. Phase 4 would add an additional 700MW (2 x 350MW) capacity to bring the power station to 1830MW capacity.

The total project cost was $460 million. The project commenced construction in May 2016 and completed trial production in the second quarter of 2018. However, as of 2022, the plant only had an operating capacity of about 300,000 tons of high-carbon ferro per year.

Multiple deaths have occurred at power station including: the death of a Chinese worker after being run over in 2022, the death of Indonesian workers in 2022 after a furnace exploded, the death of two workers in 2023 after collapse of a nickel waste disposal site, and an explosion in December 2023 which killed 21 workers and injured dozens.

Two Chinese nationals, who were responsible for the operation of the furnace when it exploded in December 2023, were arrested for negligence.

📋 Staff Comments

The Chinese project title is 印尼瑞浦镍铬合金有限公司年产60万吨铬铁(配套热回收焦化)及70万吨不锈钢冷轧项目 or 印尼瑞浦镍铁冶炼工程.
This loan appears to be separate from the loan that China Eximbank issued in 2018 (as captured via Project ID#69371). This issue warrants further investigation.
CDB financed Phase 1 of the Sulawesi Mining Power Station Project in Morowali Industrial Park (as captured via Project ID#66200). China Eximbank, ICBC, and Bank of China financed Phase 2 of the Sulawesi Mining Power Station Project in Morowali Industrial Park (as captured via Project ID#66207). CDB and Bank of China financed Phase 3 of the Sulawesi Mining Power Station Project in Morowali Industrial Park (as captured via Project ID#66216 and ID#69488).

📚 Sources & References

An Introduction of Tsingshan Indonesia Morowali Industrial Park
CIRCULAR DATED 2 DECEMBER 2017
中国进出口银行3.2亿美元行内银团支持印尼青山工业园四期项目, 【印度尼西亚】中国印尼综合产业园区青山园区
进出口银行3.2亿美元银团贷款全力服务浙企“走出去”
Road to Ruin: Challenging the Sustainability of Nickel-based Production for Electric Vehicle Batteries
青山控股:千亿镍王遭遇生死时刻
印尼瑞浦镍铬合金冶炼工程3#电炉正式开工
Metallurgical Corporation of China Ltd. 2018 Annual Results Announcement
The focus behind the surge in nickel: Learn more about Tsingshan Holdings in one article
Indonesia battery-grade nickel plant awaits environmental nod- developer
Indonesia Morowali 2x350MW Thermal power project (Phase 4 Expansion)
Sulawesi Mining power station
Indonesia Nickel Plant Explosion Death Toll Rises To 18
The death toll rises to 18 in a furnace explosion at a Chinese-owned nickel plant in Indonesia
Furnace explosion at Chinese-owned nickel plant in Indonesia kills at least 13 and injures 46 others
Foreign Ministry Spokesperson Mao Ning’s Regular Press Conference on December 26, 2023 Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.