Name of the Mine
Hengjaya mine.

Location  
Morowali Regency, on the east coast of the province of Central Sulawesi, Indonesia.

Mine Owner/s  
Nickel Industries holds an 80% interest in PT Hengjaya Mineralindo, the owner of 100% of the Hengjaya mine, with the remaining 20% interest owned by the company’s Indonesian partner.

Brief Description  
Hengjaya is a large tonnage, high-grade nickel laterite deposit close to the Indonesia Morowali Industrial Park.

The mine tenement covers 5 983 ha and holds a 20-year mining operation/production licence, issued in June 2011, with two further ten-year extension periods.

Brief History  
Production at the mine started in October 2012, after Nickel Industries advanced the project through the various permitting, exploration, community socialisation, environmental studies and feasibility and development stages.

In January 2024, the Indonesia government introduced a ban on the exportation of unprocessed minerals. Production ceased at Hengjaya with Nickel Industries forced to explore in-country beneficiation options.

When Chinese company Tsingshan committed to establishing a material downstream processing presence in Indonesia, requiring a reliable supply of nickel ore, production at Hengjaya restarted. 

Hengjaya also supplies Ranger Nickel.

Primary Metals/Minerals  
Nickel.

Secondary Metals/Minerals  
Cobalt and iron.

Geology/Mineralisation  
The geology at the Hengjaya mine is ideal for the formation of thick and relatively high-grade nickel laterite. At least seven domain areas have been identified where the laterite varies in physical and chemical characteristics.

Nickel laterite is a soil residue rich in oxides of iron with nickel enrichment, which is formed in alkaline and ultramafic rocks as a result of chemical weathering and further enrichment in tropical climate conditions. 

The presence of the original rock in the formation of nickel laterite is the main factor. These rocks contain a lot of olivine minerals, which are primary nickel carrier minerals. The highest concentration of olivine is found in ultramafic rocks. Ultramafic rocks that have soluble components (especially olivine) provide a good depositional environment for nickel. 

Reserves  
Not stated.

Resources  
According to Bell Potter, as at March 18, 2024, the mine had total estimated mineral resources of 185-million tonnes grading 1.3% nickel.

Type of Mine
Openpit.

Mining Method  
Openpit.

Major Infrastructure/Equipment  
The openpit mine features a haul road and double-lane bridge linking it to the Indonesia Morowali Industrial Park.

Closely associated with drilling activities is the Hengjaya mine’s on-site laboratory, which includes preparation and assay facilities.

The mine also has two rotary kiln electric furnace nickel pig-iron (NPI) lines.

The mine further includes a battery storage facility.

Prospects  
Nickel Industries started its transition into battery-grade nickel intermediates in late 2022, with the conversion of Hengjaya’s production from NPI to nickel matte.

Contact Details 
PT Hengjaya Mineralindo
Tel +62 821 29183191
Email info@hengjaya.co.id

Sources
Bell Potter. Website: https://bellpotter.com.au/
Bell Potter. Nickel Industries – Permit delays a speedbump (March 18, 2024).

Nickel Industries. Website: https://nickelindustries.com/
Nickel Industries. 2022 Annual Report (April 28, 2023).

PT Hengjaya Mineralindo. Website: https://hengjaya.co.id/