Fujian Province-based Chinese mining company Pan-Chinese Mining Co. has signed an agreement to develop a ferronickel alloy project in Maluku, Indonesia.

Under the framework of the agreement, Pan-Chinese Mining will build six blast furnaces and power cogeneration devices in Maluku to produce ferronickel using local red clay nickel ore as raw material. The project is expected to be put into production within two years. However, the company has not yet revealed a specific date for the launch of construction work.

In addition, Pan-Chinese Mining will also build other supporting facilities such as port, warehouse and laboratory facilities to boost local infrastructure in the underdeveloped region of east Indonesia.