Name of the Project
Excelsior nickel cobalt (ENC) project.

Location
Indonesia.

Project Owner/s
Nickel Industries and Shanghai Decent.

Project Description
The project envisages production of about 72 000 t/y of contained nickel equivalent.

In addition to producing a mixed hydroxide precipitate, the project will be capable of producing nickel sulphate and cathode, differentiating it from the current generation of high-pressure acid leach (HPAL) plants being built across Indonesia, and providing Nickel Industries with significant operating flexibility through the cycle.

The project will benefit from existing Indonesia Morowali Industrial Park infrastructure and be supported by existing and future laterite resources that Nickel Industries has identified.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Shanghai Decent will provide a capital expenditure (capex) guarantee, whereby total construction and commissioning costs will not exceed $2.3-billion.

The capex guarantee includes a tailings solution, which is best of breed for tailings storage and management, and an integrated sulphuric acid plant that will generate significant heat that can be turned into power, significantly lowering the carbon footprint of the operation.

Planned Start/End Date
Construction is expected to start in either December 2023 or March 2024, or sooner if both parties agree. Commissioning will start no later than 24 months thereafter.

Latest Developments
Nickel Industries has announced plans to raise A$943-million in a conditional share placement and a collaboration agreement over its ENC project.

Nickel Industries unveiled a conditional placement to PT United Tractors, through its subsidiary PT Danusa Tambang Nusantara (DTN), priced at A$1.10 a share on June 9, giving DTN a 19.99% interest in Nickel Industries.

The share placement will be subject to shareholder approval and the completion of the PT Huayue nickel cobalt placement before the end of September.

Nickel Industries has also struck a collaboration agreement with DNT, under which DNT will acquire a 20% equity interest in the ENC project, reducing Nickel Industries’ investment in the project. The transaction provides an opportunity to double expected production from the project from 72 000 t/y to 144 000 t/y. DTN also obtains the right to acquire a 20% equity interest in Stage 2 of the project. The Stage 2 expansion will be subject to a positive final investment decision by the Stage 1 shareholders.

The collaboration agreement is subject to several conditions precedent, including the completion of a feasibility study and Nickel Industries’ making a final investment decision to proceed with the project.

Shanghai Decent will provide a “capex guarantee”, whereby total construction and commissioning costs will not exceed $2.3-billion.

The companies involved are working together to complete a feasibility study for ENC ahead of a final investment decision.

Nickel Industries has reported that the collaboration agreement with DTN means that the partners have access to United Tractor’s local knowledge and operational expertise while also allowing for an immediate capital injection.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Nickel Industries, tel +61 2 9300 3311 or email info@nickelindustries.com.