Indonesia's Gunbuster Nickel Smelter Nears Shutdown Amid Parent Company Collapse
PT Gunbuster Nickel Industry, an Indonesian nickel smelter affiliated with bankrupt Chinese firm Jiangsu Delong Nickel Industry Co., is suspending payments to energy suppliers and facing nickel ore shortages. Sources indicate that production cessation is imminent if the situation persists.
Despite booming Indonesian nickel production, global prices have plummeted, impacting smelters in Southeast Asia. Compounding Gunbuster's challenges is a scarcity of mining quotas, exacerbating the fallout from Delong's bankruptcy.
Delong, a key initial investor in Indonesian nickel smelting, underwent restructuring last year due to China's economic slowdown and competition from Tsingshan Holding Group. Representatives from Delong and law firm King & Wood Mallesons, appointed as judicial manager, have yet to comment on the matter.
Gunbuster, with an annual production capacity of 1.8 million tons of nickel pig iron, has halted most of its production lines. A Chinese government-appointed working group has assumed control of the smelter as part of Delong's restructuring.
Once seen as a promising investment, Gunbuster's massive scale positioned it as a rival to Tsingshan Holding Group. However, the economic downturn and operational challenges have led to its impending shutdown.