Indonesia's 1st HPAL nickel plant could start commissioning in H2 2020 - CRU

Feb 6 (Reuters) - The first battery-grade nickel and cobalt
project in Indonesia using high-pressure acid leaching (HPAL)
technology could start commissioning in the second half of 2020,
consultancy firm CRU Group said on Thursday.
The project, a joint venture between Indonesia's Harita
Group and China's mining firm Ningbo Lygend on Obi island, will
have an annual capacity to produce 36,000 tonnes in nickel
content and 4,400 tonnes in cobalt content in the first phase,
CRU said in a report.
HPAL has a troubled history of operational problems and slow
ramp-ups, but several Chinese investors had plans to use the
technology in Indonesia to make nickel and cobalt materials for
batteries used in electric vehicles.
"Previous several HPAL projects have experienced huge cost
overruns and severe delays. If this project is successful, other
investors may follow suit to meet the increasing demand from the
battery sector," said CRU analyst Daniel Chen.
The CRU report said the project could start production of
qualified products in early 2021.
Ningbo Lygend and Harita Group were not available for
comment.
PT Halmahera Persada Lygend, as the joint venture is called,
is one of at least three HPAL projects led by Chinese investors
in Indonesia, the world's biggest producer of nickel ore.
Chinese battery firm GEM Co Ltd 002340.SZ had expected to
start trial production of its battery nickel plant with Chinese
stainless steel giant Tsingshan in August 2020, its president
had told Reuters last year. But industry sources told Reuters the GEM project is likely
to start in 2021 at the earliest.
The other Tsingshan project is with Zhejiang Huayou
603799.SS , China's top cobalt maker, which could start
production in 2021, its president had told Reuters, in line with
the industry's expectations. CRU estimates around 5% of nickel demand came from the
battery sector in 2019, but that will rise to 23.7% by 2030 and
33% by 2040.