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)

Project narrative

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.