PT Halmahera Persada Lygend Nickel Smelter power station

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Halmahera Persada Lygend power station is a 2,240 to 4,200-megawatt (MW) coal-fired power plant under development in the Kawasi Village industrial area on Obi Island, North Maluku, Indonesia.

Location

The satellite photograph below shows the site of the PT Halmahera Persada nickel smelter near Kawasi Village, Obi Island, North Maluku, Indonesia.

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Background on Project

PT Halmahera Persada Lygend, also known as PT HPAL or PT HPL, is a joint venture between Indonesia's Harita Group and Chinese mining company Ningbo Lygend. The company received an environmental permit to construct a nickel smelting facility on Obi Island in January 2019.

A 4 x 150 MW power station was proposed to provide electricity for the nickel smelting process.

In April 2021, construction of a 60 MW unit appeared to begin at the same site.

By May 2021, the first two 30-MW coal-fired units for the smelter were commissioned.

The nickel smelter began operating in June 2021, and the total investment was estimated to have exceeded US$1 billion.

Phase II Development

As of March 2020, construction has begun on the 4 x 150 MW units in Phase II.

In September 2022, Phase II Unit 2 was connected to the grid.

4.2 GW of potential coal capacity

In December 2021, the Lygend website detailed the following about the overall nickel project:

"(...) 中国恩菲与力勤资源双方进一步加强合作，先后签订了湿法二期、硫酸镍、RKEF火法冶炼、湿法三期等一系列工程技术服务和核心设备采购合同。OBI红土镍矿项目全部投产后，将形成6条高压酸浸生产线、20条RKEF生产线、50万吨电池级硫酸镍和7万吨硫酸钴精炼厂、300万吨不锈钢厂及配套4200MW燃煤电厂、420万吨酸厂、码头、宜居小镇的大型综合智能制造产业园，将实现1500万吨低品位镍矿、2600万吨高品位镍矿的年处理量，镍金属产量将超过40万吨/年。"

(Google Translate: (...) China ENFI and Liqin Resources have further strengthened their cooperation and signed a series of engineering and technical services and core equipment procurement contracts such as the second phase of wet process, nickel sulfate, RKEF pyrometallurgy, and the third phase of wet process. After the OBI laterite nickel ore project is fully put into operation, it will form 6 high-pressure acid leaching production lines, 20 RKEF production lines, 500,000 tons of battery-grade nickel sulfate and 70,000 tons of cobalt sulfate refinery, 3 million tons of stainless steel plant and supporting 4200MW coal-fired power plant, 4.2 million tons of acid plant, wharf, and a large-scale comprehensive intelligent manufacturing industrial park in a livable town, which will achieve an annual processing capacity of 15 million tons of low-grade nickel ore and 26 million tons of high-grade nickel ore, and the output of nickel metal will exceed 400,000 tons. tons/year.)

Phase III Development

On January 29, 2022, Energy China Tianjin Power Construction (中国能建天津电建 - Zhōngguó néng jiàn tiānjīn diàn jiàn) won the bid for the first section of a 4 × 380 MW project. The project was described as jointly invested by Ningbo Liqin Resources Technology (宁波力勤资源科技 - Níngbō lì qín zīyuán kējì) and Indonesia Khalida Group (印尼哈利达集团 - Yìnní hā lì dá jítuán).

As of November 2022, Phase III would reportedly be operated by PT Obi Nickel Cobalt.

Financing

In April 2021, DBS announced that it is jointly leading a consortium of nine banks to provide US$625 million in financing for the PT Halmahera Persada Lygend nickel smelter. However it is unclear what percentage went to the power plant. The consortium includes BNP Paribas, Bank Mandiri, Bank Central Asia (BCA), Bank Negara Indonesia (BNI), Maybank, Overseas Chinese Banking Corp (OCBC), OCBC NISP, and United Overseas Bank.

In September 2022, Lygend Resources signed a new strategic cooperation agreement with the Ningbo Agricultural Bank of China. In November 2022, the bank reiterated their financial support for Lygend Resources.

Project Details

• Sponsor: PT Halmahera Persada Lygend (Phase I and II), PT Obi Nickel Cobalt (Phase III)
• Parent company: Harita Group (63.1%), Ningbo Lygend (36.9%)
• Location: Kawasi, Obi Island, North Maluku, Indonesia
• Coordinates:
  • Phase I: -1.53615,127.416015 (exact)
  • Phase II, Phase III: -1.561433126, 127.4210337 (exact)
• Status & capacity: 2,240 MW operating or under development
  • Phase I, Units 1-2: 2 x 30 MW, Operating
  • Phase I, Unit 3: 60 MW, Construction
  • Phase II, Unit 2: 150 MW, Operating
  • Phase II, Units 1, 3-4: 3 x 150 MW, Construction
  • Phase III, Units 5-8: 4 x 380 MW, Pre-permit development
• Type:
• In service: Unit I-1: 2020, Unit I-2: 2021
• Coal type:
• Coal source:
• Source of financing: USD 625 million from DBS consortium for the nickel smelter

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