JAKARTA – One of Indonesia's largest nickel smelter companies, PT Gunbuster Nickel Industry (GNI), is reported to have reduced its production and faces the possibility of shutting down its entire operations.

Production cuts began a few months after GNI’s parent company, Jiangsu Delong Nickel Industry Co., declared bankruptcy. Since then, according to a Bloomberg report, GNI has delayed payments to suppliers of nickel ore and coal for its power plant.

“The GNI smelter seems to be on the verge of closure if conditions do not improve,” a Bloomberg source, who requested anonymity for safety reasons, revealed.

Notably, Jiangsu Delong is the third-largest stainless-steel producer in China. A report from the nonprofit organisation C4ADS highlights that Jiangsu Delong is one of two Chinese business entities that control 70% of nickel smelter capacity in Indonesia.

GNI’s nickel smelter began operations in 2021. The facility, located in North Morowali, was inaugurated by former President Joko Widodo, given its significant investment value of USD 3 billion.

So far, GNI has not issued an official statement. (KR/ZH)