Hanking--BMS Industrial Park, established in 2012, is a SINO-Indonesia jointly invested project, which is jointly witnessed by Mr. Xi Jinping, the chairman of China who take part in the Asia-pacific Economic Cooperation (APEC) summit in Indonesia, and Mr. Covey, the president of Indonesia. In July 2012, this project obtained China's National Development and Reform Commission on overseas investment approval (approval document number: Development Reform Foreign Investment [2012] 2154). The project is one of the key foreign investment projects of “One Belt One Road” in Liaoning province, and obtained the care and attention of the Liaoning Provincial Committee and the successive leaders of Liaoning Province Government over the years. Since the establishment of Industrial Park in 2012, Hanking Group give full play to its own in the aspects of mining development, smelting technology advantage, successively invested 850 million yuan to carry out the construction of the park. At present, it has an annual production capacity of 2 million tons of laterite nickel ore, and is planning and implementing smelting projects including pyrometallurgy and hydrometallurgy. The specific planning is described as follows:

Overall aim

Based on its own advantages and social capital together with many excellent enterprises, Hanking Group will use about 5-10 years to build a high-tech new industrial park, which will be characterized by the nickel ore resources as the basis, nickel smelting processing industrial cluster as the starting point, specialized by comprehensive and recycling utilization of regional resources. The company makes full use of nickel, iron, cobalt and other rare metal resources to produce iron and steel products, such as nickel-iron, stainless steel billet and ternary battery raw materials such as nickel-cobalt hydroxide and nickel-cobalt sulfate. The company will strive to build the world's famous collection of laterite pyrometallurgy, hydrometallurgy, new technology smelting, iron and steel smelting as one of the advanced technology large joint factory.

Enterprise advantages

Hanking Group is one of the earliest private enterprises responding to the policy of “the Belt and Road” in line with the development concept of "invite in high-tech, go out to get resources". In China, Hanking built the MEMES high-end sensor chip production and manufacturing plant introduced from the United States; In foreign countries, the company acquired laterite nickel ore resources in Indonesia, whose reserves ranked the third in the world at that time, laying a foundation for the subsequent construction of smelting, resource reserves and development of the Group. Due to years of deep cultivation in Indonesia, the planning and construction of smelting industrial parks in Indonesia have great advantages:

Resource 

Hanking Group has four mining rights companies and one smelting company HMN in Indonesia. It has 4.53 million tons of nickel metal resources and 260,000 tons of cobalt metal resources that have been carefully surveyed and verified and approved by Australia CSA Company in accordance with the Australian JORC standard. The ore grade and mine service life can fully meet the needs of smelting enterprises, and the huge resource reserves can completely solve the worries of raw material supply for enterprises hoping to build smelters in Indonesia.

Social environment 

Hanking Group has been working in Indonesia for more than ten years. It has a good command of the local social, political and economic environment, customs and people, and relations at all levels. The local community has also developed its own principles through years of operation, which makes it easy to handle social affairs. For the enterprises hoping to build smelters in Indonesia, it saves a lot of energy and cost of public relations coordination, and can be more comprehensively invested in the project construction, which greatly reduces the risk of project investment.

Geographical location 

The Hanking nickel mine project is located near the sea and has a good natural port and dock conditions, which can meet the needs of smelting construction land. The North Industrial Park is 3 square kilometers, the Central Industrial Park is 16 square kilometers, and the Damaguwa Industrial Park is 2.7 square kilometers in the area, and the land available for smelter construction and development is up to 21.7 square kilometers.

Qualification documents 

All the formalities and documents of the construction land of the project have been approved and completed. If the project construction is started, all the approved documents can be directly used, which obviously saves time for the preparation of materials in the early stage of the project construction. In addition, the Hanking is very clear about Indonesia's laws and regulations on resources and smelting project investment, and has completed all the compliance work.

Construction of facilities

The project site has a full range of facilities available for construction, which can completely meet the early needs of the construction. The construction of basic facilities in the working and living camps has been completed, and the roads in each zone are mostly repaired and can be extended and upgraded at any time.

Transportation distance

The construction of smelting plant in the park will significantly reduce the shipping cost of nickel ore. As nickel ore is the main cost of nickel iron smelting, with the increase of the number of ferro-nickel plants, it will become another advantage of ferro-nickel plants over other plants and strengthen the core competitiveness of low-cost operation.

Personnel

Hanking Group not only has excellent personnel in social affairs processing in Indonesia, but also has a team of experts in design, construction and production in the field of ferro-nickel RKEF crafts, which is a valuable talent resource for Hanking project construction.

Overall planning

In Hanking-BMS Industrial Park, Hanking Group will use 5 to 10 years to successively build a ferro-nickel RKEF pyrometallurgical smelting project with an annual output of 260,000 tons, a stainless steel billet smelting project with an annual output of 850,000 tons, a HPAL hydrometallurgical smelting project with an annual output of 60,000 tons (including nickel) and its supporting 510MW power supporting project and a port supporting project with 50,000 tons. The total investment of the project is 22.9 billion yuan. As the following table shows:

List of smelting project construction plans

The project is divided into two phases:

Phase 1

An annual output of 260,000 tons of ferro-nickel RKEF pyrometallurgical project

Hanking Group will use its own funds from the sale of mine shares to carry out the construction of 260,000 tons of pyrometallurgical projects, as well as supporting the construction of related power plants and dock facilities. The total investment of the project is estimated at 2.56 billion yuan.

An annual output of 34,000 tons (including nickel) HPAL hydrometallurgical project

As the new energy vehicles quickly occupy the market, and there is a huge car battery supply, including nickel sulfate, cobalt sulfate, the ternary precursor raw material supplies remain tight, Hanking Group will seizes the opportunity to work with domestic hydrometallurgical enterprises to carry out the annual output of 60,000 tons (nickel) HPAL hydrometallurgical project construction work, cobalt&nickel hydroxide production raw material to provide resource support for the battery raw material plant. The total investment of annual output of 60,000 tons (including nickel) HPAL hydrometallurgical project, including power plant terminal facilities, will be about 11.512 billion yuan.

 Phase 2

An annual output of 850,000 tons of stainless steel billet smelting project

With the first phase of the project put into production and profit, Hanking Group will use its own funds and syndicated loans and other forms of equity, debt financing to build an annual output of 850,000 tons of stainless steel billet project, truly realize the transformation from mining to steel, and which will become the most cost-effective stainless steel production enterprise. The total investment of the project, including power plants and wharves, is about 8.304 billion yuan.

After the completion of phase I and phase II, Hanking Group Indonesia project produced 260,000 tons of 10% ferro-nickel alloy, 58,700 tons of 5% ferro-nickel alloy, and 184,200 tons of nickel-cobalt hydroxide. Equivalent to nickel metal output 149,800 tons, 6,690 tons of cobalt metal. Its operating revenue reaches 13.811 billion yuan and its net profit reaches 2.285 billion yuan.