Chengtun Mining Group Co. Ltd. said Aug. 9 that it plans to spend US$145 million to build a 340,000-tonne nickel smelter in Indonesia.

The project, located at the Weda Bay Industrial Park at Halmahera, is a 65/35 joint venture set up by Huawei Nickel Industry Ltd. and Yongqing Technology Co. Ltd.

Chengtun plans to increase its holding in Huawei Nickel to 55% after a capital increase of US$5.5 million, with the balance to be owned by Zhejiang Huayou Cobalt Co. Ltd. This will give Chengtun a 35.75% stake in the smelter. Chengtun may increase its investment in accordance with the project's future needs, the statement said.

The project's after-tax profit is estimated at US$95 million after construction is complete.