The restrictions on imports from Australia came into effect in the second half of last year, resulting in China's imports dropping to virtually zero in the first two months of this year.

The project with Singapore-based Rigqueza International will produce 30,000 tonnes of nickel matte a year, CNGR said.

Analysts, however, said moves to rein in steel output in China should keep any pullback in prices in check.

Chinese steel futures extended their rally in early trade to hit fresh peaks, boosted by strong domestic demand.

China commissioned 38.4 GW of new coal plants last year, more than offsetting the retirements achieved in the rest of the world.