Hong Kong-based China Risun Group has formed a joint venture with Tianjin Xintiangang and Stephanie Development to develop and construct a 4.7-million-tonne coking coal project in Indonesia.
The company, which confirmed its first foray into growing its business internationally, said the venture between the three will be called De Tian Coking. It will be located in Morowali Industrial Park in Sulawesi and will involve a combined investment of about US$830 million.
“With this transaction, the group can further reinforce its leadership position as an independent producer and supplier of coke,” said Risun officials.
“In addition, by partnering with Tianjin Xintiangan, a renowned steel producer, and Stephanie Development, an integrated developer of natural resources, the three parties will be able to achieve mutual benefits by jointly establish a new production base in Indonesia.”
According to the JV members, there are “expedient air, sea and land transportation routes” that can be utilised for Indonesian coal domestically or from abroad, such as from Australia through sea routes. Moreover, most of the coke products will be sold to Tianjin Xintiangang in the PRC, giving the group a stable supply of coal and sales channel for coke.
No timelines for construction and development were released.
Per research by Frost & Sullivan, China Risun Group was the largest independent coke supplier by volume in 2020.
Source: China Risun Group