On July 20th, with the gradual expansion of production scale, the company's own mine reserves can no longer meet the needs of long-term development. For this reason, the company has turned its sights to Indonesia, which has rich reserves of laterite ore.

The company disclosed today that it intends to issue no more than 300 million shares in non-public offerings at a price of no less than 20.36 yuan per share. The total amount of funds raised shall not exceed 6 billion yuan to invest in "Jean Nickel Indonesian laterite ore smelting (low nickel). project". The target of this issuance is no more than 10 specific investors who meet relevant regulations. The lock-up period for shares is 12 months.

According to reports, this fundraising project is a large-scale low-Ni crucible smelting project invested by Jien Nickel in Southeast Sulawesi, Indonesia. The construction period is 3 years. The project is expected to achieve an annual average operating income of 2.881 billion yuan. Annual net profit of 728 million yuan.

According to reports, the average annual growth rate of nickel concentrate production and consumption in China in recent years is above 30%, far higher than the world average, and it is the fastest growing country in the world in terms of nickel consumption. As the growth rate of domestic nickel ore production is much lower than the growth rate of consumption, China's imported nickel raw materials increase year by year, and the dependence on overseas raw materials continues to increase. From 2005 to 2010, China's nickel ore imports increased by nearly 52 times. Among them, the lateritic nickel ore is a strategic mineral species and an important steel and metallurgical raw material that are in short supply in China. Most of the laterite nickel mines imported from China come from Indonesia and the Philippines in Southeast Asia, accounting for 98% of the total imports. Companies such as Jinchuan Group, Baosteel, and China Nonferrous Metals have all started overseas deployment in recent years. The company's “falling” in Indonesia is intended to break through the bottleneck of nickel ore raw materials.

Jen Nickel stated that in recent years, the company's nickel product processing capacity has been continuously improved. As the company's own mine production has been declining year by year, self-produced raw materials can no longer meet production needs. In order to improve the nickel raw material protection capabilities, the company has expanded its horizons to the development of rich reserves of lateritic nickel ore resources and selected low-nickel niobium for the construction of a smelting base in Indonesia, the country's most important laterite nickel importer.

However, according to Indonesia's relevant laws and regulations, investors must process all metal raw materials in Indonesia to develop local industries, and they must not directly export unrefined mineral products. They must first finish refining in Indonesia before exporting. Jen Nickel stated that the development of nickel resources overseas and the establishment of a large-scale nickel smelting base have become an important factor in determining the future development of the company.