China’s Shandong Xinhai Technology and China Baowu Steel Group signed a contract with nickel miner PT Vale Indonesia to develop a processing plant on Sulawesi island. The total investment would be around US$2.1 billion.

The project will be accelerated to construct and can be completed by 2025.

Under the deal, the companies will form a joint venture, with Vale controlling 49% of the stake. Shandong Xinhai and Baowu, through their subsidiary Taiyuan Iron and Steel Co. Ltd (TISCO), would hold 51% togetherly.

The project would produce ferronickel with 73,000 tons to 80,000 tons of nickel content per year.