Indonesia Morowali Industrial Park (IMIP)

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Indonesia Morowali Industrial Park (IMIP) 印度尼西亚莫拉瓦利工业园(IMIP) - 简体中文翻译 إندونيسيا موراوالي للحديقة الصناعية (IMIP) - الترجمة إلى العربية Индонезийский промышленный парк Моравали (IMIP) - Перевод на русский язык

Indonesia Morawali Industrial Park (IMIP) is driven by several key factors. These include its ability to access abundant high-grade nickel ore (>1.8% nickel grade), a valuable resource no longer exportable from Indonesia due to government regulations prohibiting the export of nickel ore with less than 4% nickel content.

Additionally, IMIP benefits from its own purpose-built 1.26GW power plant, primarily fueled by domestically sourced thermal coal. This provides the industrial park with a competitive advantage in terms of electricity costs.

One of IMIP’s distinctive features is its vertically integrated operations, allowing it to produce stainless steel products using key raw materials like nickel ore and power.

IMIP is deeply committed to contributing positively to society, fostering ethical practices, and promoting prosperity for all. The park continually strives to benefit the nation, local communities, and the environment in which it operates, realizing aspirations through dedicated service to Indonesia.

However, it’s essential to note that there have been reports of unsafe working conditions at some smelters within IMIP, resulting in injuries and even fatalities. Pollution has also led to respiratory and eye problems among workers. Workers have protested for better safety measures and increased wages, highlighting the need for stronger safety regulations in the industry.

Nickel output at Indonesia Morawali Industrial Park

In 2018, IMIP was responsible for approximately 50% of Indonesia’s nickel product output, signifying its significant role in the country’s industrial landscape.

Located in the Bahodopi district of Morowali Regency, Central Sulawesi, IMIP spans 3,000 hectares and benefits from a seaport, an airport, and a 2 GW coal power plant. Operated by PT Indonesia Morowali Industrial Park, it hosted 18 companies with a total investment of USD 15.3 billion in October 2022, with projections of accommodating 40 companies by 2025.

The park’s estimated capacity for stainless steel production reached 3 million metric tonnes per year in 2020. Additionally, IMIP had plans to develop electric vehicle battery plants in 2019, further highlighting its adaptability and expansion into emerging sectors.

The IMIP project’s inception dates back to 2009, preceding China’s Belt and Road Initiative (BRI) launch in 2013. It gained momentum when Chinese President Xi Jinping announced the Twenty-First Century Maritime Silk Road in Indonesia, accompanied by a cooperation agreement for the IMIP project. The China Development Bank injected USD 1.22 billion into the project in 2018.

Locators

Various companies from Indonesia, China, and other regions are actively participating in the IMIP, with significant investments from prominent Chinese firms such as Tsingshan Holding Group, GEM Company Limited, Chinese Amperex Technology (CATL), Zhejiang Huayou Cobalt Company Limited, and China Molybdenum Company Limited. Chinese banks, including the Export–Import Bank of China (China Eximbank) and the China Development Bank, play a pivotal role in financing the park’s development.

Today, IMIP encompasses a vast 2,000-hectare compound, featuring worker accommodations, executive visitor facilities, lime, coke, and acid plants, seaports, and an airport with a 1,800-meter runway. The park includes two under-construction HPAL facilities and 11 smelters, producing nickel pig iron (NPI), ferrochrome, and stainless steel. IMIP also relies on nearby nickel mines like the Hengjaya mine to supply essential resources.

IMIP’s location in the nickel-rich Central Sulawesi Province makes it a significant player in the global nickel industry. The region has experienced substantial growth since the mid-2010s, contributing to Indonesia’s efforts to reduce mineral resource exports and focus on value-added downstream industries.

As of June, more than $22 billion has been invested in IMIP, marking substantial growth compared to $6.7 billion in 2019. This underscores the park’s critical role in Indonesia’s industrial landscape and its ongoing development to meet evolving market demands.

Additional Details for Indonesia Morawali Industrial Park

  • Key industrial sectors: Ferronickel
  • Electricity supply: 2.0GW coal-fired power plant (currently expanding to 2.9GW)
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