Indonesia: Coal-fired power plant units at Morowali Industrial Park granted to Shanghai Electric
Shanghai Electric has signed contracts for the three 380MW coal power plant units which will power Tsingshan Steel’s ambitious smelting operations at the Morowali Industrial Park in Sulawesi, Indonesia. The three units will be used to power production of ferronickel, ferrochrome and aluminium, all of which are used to make different steel products.
Some context: The Morowali Industrial Park is Indonesia’s first integrated steel production facility, replete with associated smelting capacity and a sea port. It reportedly already employs 43,000 people, 88% of whom are Indonesian.
More context: Tsingshan Steel has been operating in Indonesia since 2012, but interest in nickel smelting and related industrial operations in the country increased since Indonesia’s 2014 ban on unprocessed nickel exports. As Alvin Camba has written for PPDC, Indonesia’s use of trade and industrial policy is rapidly reshaping relations between Tsingshan Steel, the Indonesian government and domestic nickel miners, as well as creating an environmentally damaging “race to the bottom” among miners.
One more thing: Tsingshan Steel was also in the news recently for its announcement that it will produce and supply at least 100,000 tonnes of nickel matte to battery producers. The announcement broke a deadlock in nickel markets and saw prices plummet 8.5% to their lowest since 2016. Much of that nickel matte may be produced in the Morowali Industrial Park.
Chile: China Rail Construction Corporation to build, maintain and operate section of Route 5 Highway
China Rail Construction Corporation have been awarded a PPP contract by the Chilean government to “construct, repair, maintain and operate” a 200km section of the Route 5 highway between Talca and Chillan.
Why it gets our attention: The contract represents the first time a Chinese company has been included in a PPP contract for road construction in the country. The PPP includes constructing a new branch road, public transport stops, service roads, drainage channels and “greening” operations. It is expected to generate up to 350 new jobs per month.
Chile’s Route 5 is a critical transportation running the spine of the country up to the border with Peru and is part of the Pan-American Highway.