Chinese Nickel Producer Lygend Begins Cobalt Production in Indonesia

In a significant milestone, Chinese nickel producer Ningbo Lygend commenced cobalt metal production on Indonesia's Obi Island in early July. This marks the first instance of a Chinese refinery producing cobalt metal overseas. The initial phase of Lygend's project has a production capacity of 4,000 tons per year, potentially expanding to 6,000 tons annually.

"Whether and when the second phase (2,000 tons per year) will begin construction depends on market conditions," a source informed Metalnomist. The produced cobalt will be distributed to China and other international markets.

Additionally, Lygend's Indonesian subsidiary launched the third production line at its ONC nickel high-pressure acid leaching (HPAL) project on July 1. The HPAL project aims to produce mixed hydroxide precipitate (MHP), with a portion processed into cobalt sulfate, cobalt metal, and nickel sulfate.

Lygend's cobalt production in 2023 was approximately 7,000 tons metal equivalent, and it is expected to increase to around 10,000 tons this year.