BACK Sinosteel MECC Clinches Deal with Indonesian Stargate for 2x33MVA Ferronickel Plant

On December 28, 2021, Sinosteel Equipment & Engineering Co., Ltd. (Sinosteel MECC)  signed an EPC contract with Indonesian PT Stargate Mineral Asia (Stargate) for the 2x33MVA ferronickel alloy project via video conference. Participants attended the ceremony online from Beijing, Inner Mongolia, Jakarta, Indonesia, Russia and Mongolia.

Indonesia is one of the countries with the richest laterite nickel raw ore resources in the world. In January 2014, it introduced a law banning the exportation of laterite nickel raw ore to encourage foreign companies to invest in the construction of laterite nickel raw ore deep processing plants in Indonesia. As a local mining company, Stargate has 147 million tons of laterite nickel ore reserves.

Since February 2019, Sinosteel MECC has been in contact with Stargate and has visited Indonesia many times for field surveys and business negotiations. Even the pandemic has not interrupted the close communication between Sinosteel MECC and Stargate. After nearly three years of negotiations, Sinosteel MECC successfully signed the contract with its advanced technology, rich and solid international engineering experience and high-quality services.

According to the contract, Sinosteel MECC is responsible for engineering, equipment procurement and supply, erection and civil construction. The main content of the project is two sets of fully enclosed 33MVA FeNi alloy submerged arc furnaces and related dry kilns, rotary kilns, production and process auxiliary facilities of each equipment, the auxiliary facilities for the entire plant.

As the first FeNi alloy EPC project to be constructed by Sinosteel MECC overseas, it will adopt the RKEF process and a number of self-developed technologies of Sinosteel MECC:

1 Self-developed technology reduces investment and operating costs.

2 New high-efficiency, energy-saving and environmentally-friendly hot stove is simple in structure, space-saving, easy to operate and maintain, and can sufficiently reduce costs while ensuring the heating efficiency.

3 Self-developed rotary kiln primary air preheating technology is expected to save about 10,000 tons of standard coal per year for the rotary kiln.

4 Self-developed submerged arc furnace flue gas waste heat utilization technology can save about 100kg/t alloy of standard coal while realizing the recovery and utilization of gas waste heat.

5 Self-developed submerged arc furnace 5 automatic feeding system is not only stable, safe and reliable, but can also reduce the labor intensity and improve the production efficiency of submerged arc furnaces.

These self-developed technologies of Sinosteel MECC focus on industrial engineering and service, civil engineering and investment, energy saving and environmental protection, safety and protection as well as high-tech business, striving to achieve cost reduction, efficiency increase, environmental protection for customers and create model projects.

This is not the first time that Sinosteel MECC and Stargate have had fruitful cooperation. The signing of this contract started the second close cooperation between Sinosteel MECC and Stargate. Prior to this, Sinosteel MECC provided Stargate with consulting services for the project, which was highly recognized and laid a solid foundation for another cooperation.

At the signing ceremony, Lu Pengcheng, Chairman of of Sinosteel MECC, said it is a great honor for Sinosteel MECC to cooperate with Stargate on the FeNi alloy project. Lu Pengcheng said: "As one of the first Chinese companies to enter the Indonesian market, since Sinosteel MECC entered Indonesia market in 2006 and set up representative office in 2016, after years of marketing development, we have accumulated rich experience in EPC service in Indonesia. In the past two years, coking, sintering, lime kiln and raw material plant projects of Indonesia Dexin’s steel complex, which was executed by Sinosteel MECC as an EPC contractor, have been successfully put into operation. With Sinosteel MECC joining the China Baowu Group, we have the strength and confidence to provide professional and high-quality service for Stargate to create an advanced and efficient FeNi alloy model project."

Lu Pengcheng wishes successful cooperation between Sinosteel MECC and Stargate through this project. Mr. Dixon Koesdjojo, Chairman of Stargate, expressed his gratitude to Sinosteel for its patience and support. He said: "It has always been Stargate's development strategy to build a FeNi melting and deep processing plant. Therefore, it is very important to choose a professional industrial engineering company with strong technology and trustworthiness, and Sinosteel MECC is the perfect option. The FeNi alloy project signed this time is an important part of Stargate's future planning, and will play a pivotal role in the future development of industrial complex and stainless-steel manufacturing." Mr. Dixon Koesdjojo looks forward to close cooperation between Sinosteel MECC and Stargate and establishing a win-win relationship.

Hua Guanglin, General Manager o f Sinosteel MECC, sent greetings and shared expectations from Russia. He said: "Even facing the huge challenges caused by the pandemic, Sinosteel MECC and Stargate are able to face the difficulties together, which shows our great trust in each other. Regardless of the scale of the project, Sinosteel MECC will always adhere to the corporate concept of "Beyond Exectations". We will carry out every project carefully to contribute to our customers’ development. We are looking forward to further long-term cooperation with Stargate.”

Signing the contract of FeNi EPC Project with Stargate, Sinosteel MECC actively contributes to the construction of “Belt and Road” and enhances its business image abroad with its advanced technology and high-quality services.

Tang Faqi, Deputy General Manager of Sinsoteel MECC, and representatives from business departments, Mr. Eddy Koh, Director of Stargate, Mr. Sandhy Hermawan, Director of Stargate, and Mr. Daniel Kong, General manager of Stargate also attended the ceremony.

Beijing ICP No.11020457 Technical support : zc-yd