Factbox: China Tsingshan's overseas nickel footprint

March 9, 20229:04 AM UTCUpdated ago

BEIJING, March 9 (Reuters) - A surge in nickel prices to record levels this week has thrown a spotlight on China's Tsingshan Holding Group, one of the world's biggest producers of the metal, and raised concerns about potential impact on its many overseas investments.

Privately-owned Tsingshan is China's biggest stainless steelmaker and has become the world's top nickel producer in 2018 thanks to its pioneering use of low-grade nickel pig iron.

The firm started building a short position in the nickel market last year, leaving it exposed to costly margin calls triggered by this week's rally in prices. read more

Shares in companies that have invested in projects with Tsingshan tumbled on Wednesday, led by state-backed Zhejiang Huayou Cobalt (603799.SS) which fell by the 10% limit two sessions in a row.

Many of Tsingshan's investments are in Indonesia, the world's second biggest nickel ore supplier.

Below is a list of its projects in the country.

* Tsingshan has partnered with Zhejiang Huayou on several projects. Their joint venture PT Huayue in Sulawesi, together with China Molybdenum Co (603993.SS), has capacity to produce 60,000 tonnes of nickel and 7,800 tonnes of cobalt per year using high-pressure acid leach (HPAL) technology.

The project shipped its first batch of mixed hydroxide precipitate (MHP) to China earlier this year. read more

* Tsingshan and Huayue also set up a venture called PT Huashan in Indonesia in February 2021, aiming to produce 45,000 tonnes of nickel matte per year. The project has yet to start operating.

* In March 2021, Tsingshan said it had signed agreements to provide 60,000 tonnes of nickel matte to Huayou and another 40,000 tonnes to CNGR Advanced Material (300919.SZ).

The announcement sent nickel futures prices lower amid concerns of over supply of battery-grade material.

* CNGR also plans to make 30,000 tonnes of nickel matte every year itself in Tsingshan's industrial park on the island of Sulawesi.

The project will be operated by CNGR unit PT ZhongTsing New Energy, which owns a 70% stake. It was not immediately clear if the remaining stake is related to Tsingshan.

* Units of Tsingshan, Huayou and Chengtun Mining (600711.SS) founded PT Youshan Nickel Indonesia in Weda Bay to produce 34,000 tonnes of nickel matte per year.

* A Tsingshan JV with Indonesia PT Bintangdelapan Group has invested in a 50,000 tonne per year nickel project with GEM Co Ltd , battery maker Contemporary Amperex Technology Co Ltd (300750.SZ) and Japan's Hanwa (8078.T).

Tsingshan cut its stake in the project by 21% to 10% last January.

GEM said on March 9 that construction and operation of the project has not been affected by recent nickel market events.

* Tsingshan has also teamed up with Chengxin Lithium (002240.SZ) to invest $350 million in an Indonesian lithium project.

Reporting by Min Zhang and Dominique Patton; Editing by Kim Coghill