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ABOUT NICKEL MINES LIMITED – OUR STORY

Nickel Mines journey in Indonesia commenced in 2009 with its acquisition of an 80% interest in the Hengjaya Mine, from which nickel ore was exported until the Indonesian Government’s ban on the exportation of unprocessed minerals in January 2014.

The export ban of unprocessed minerals was principally undertaken to encourage the establishment of a downstream processing industry within Indonesia that would allow Indonesians to increasingly benefit from their country’s great mineral wealth.

  • Whilst we own a world class Nickel Laterite mine… This is not a mining story.

  • It’s a story about the production of the lowest capital intensive and some of the most profitable nickel units in the global market in partnership with the world’s largest, lowest cost stainless steel producer.

Tsingshan, now the world’s largest producer of both stainless steel and nickel, was one of the few groups to commit to the Indonesian Government’s vision of establishing a local processing and in July 2013 set about building what is now its world class IMIP. As Tsingshan began to build NPI and stainless steel capacity within IMIP there became a growing requirement for nickel as feedstock to their plant. This resulted in Nickel Mines restarting operations on October 2015 and signing an offtake agreement with Tsingshan for the supply of high grade saprolite ore.

In 2017 expansion of this relationship resulted in Nickel Mines executing an Agreement with Tsingshan entity Shanghai Decent to collaborate on the funding and construction of 2 RKEF lines (‘Hengjaya Nickel Project’) to produce 150kt per annum of NPI containing 15kt of nickel metal equivalent. Nickel Mines completed a 60% acquisition of Hengjaya Nickel in August 2018, following admission to the ASX under the stock code NIC. Nickel Mines completed the acquisition of Hengjaya Nickel in June 2020, with Tsingshan holding the remaining 20%.

In November 2018 the Company announced a further Collaboration Agreement to acquire up to an additional 80% interest in two additional RKEF lines (‘Ranger Nickel Project’). By June 2020 Nickel Mines had completed the acquisition of 80% of Ranger Nickel.

Construction of both Hengjaya Nickel and Ranger Nickel was completed in the first half 2019, well ahead of schedule and less than 12 months after ground was broken at each project. Production levels at both projects since commissioning have been consistently well above nameplate capacity.

In November 2020 the Company executed a binding Agreement with Shanghai Decent to acquire a 70% interest (subsequently increased to 80%) in the Angel Nickel Project, a development project within the IWIP on Halmahera Island in Indonesia’s North Maluku province.

The Angel Nickel project will be a joint collaboration with Shanghai Decent, the Company’s largest shareholder, comprising:

  • four 54 KVA rotary RKEF lines with an annual nameplate production capacity of 36,000 tonnes of nickel metal (in nickel pig iron); and
  • a 380MW power plant.

By September 2021 Nickel Mines had completed the 80% acquisition of the Angel Nickel Project.

Ownership Structure

Company Timeline

1
1 October
2015

Hengjaya Mine restarts operations

Operations at the Hengjaya Mine were restarted in October 2015, following the signing an offtake agreement with Tsingshan for the supply of high grade saprolite ore.

2
19 September
2017

Collaboration and Subscription Agreement with Tsingshan

The relationship with Tsingshan expanded with Nickel Mines executing a CSA with Tsingshan to collaborate on the funding and construction of 2 RKEF lines (‘Hengjaya Nickel Project’) to produce 150kt per annum of NPI containing 15kt of nickel metal equivalent.

3
20 August
2018

Nickel Mines lists on ASX

Nickel Mines was welcomed to the Official List of the ASX on Monday 20 August 2018, following the successful completion of a A$200M IPO. Subsequently Nickel Mines exercised its option to acquire a further 35% in the Hengjaya Nickel Project for US$70M, taking the Company’s interest to 60%.

4
8 November
2018

Signing of Ranger Nickel Collaboration Agreement

In November 2018 the Company announced the signing of a binding Collaboration Agreement ('CA') to acquire up to an additional 80% interest in two additional RKEF lines, the Ranger Nickel Project. In the same month Nickel Mines completed the First Acquisition under the CA, acquiring for US$50 million a 17% of the Ranger Nickel Project.

5
1 February
2019

Hengjaya Nickel Commissioning Commences

On 1 February 2019 Nickel Mines announced that commissioning had commenced and that the first NPI had been produced from one of Hengjaya Nickel’s two rotary kilns in a maiden production run, well ahead of schedule. Commencement of production at Hengjaya Nickel was a milestone for the Company, achieved less than 12 months after ground was broken at the project.

6
17 April
2019

Move to a 60% interest in Ranger Nickel Project

In April 2019 Nickel Mines announced its intention to move to a 60% interest in the Ranger Nickel Project. The acquisition of the additional 43% interest in Ranger Nickel was completed in August 2019, taking Nickel Mines interest to 60%.

7
3 June
2019

Ranger Nickel Commissioning Commences

On 3 June 2019 Nickel Mines announced that commissioning had commenced at Ranger Nickel, with NPI being produced from one of Ranger Nickel’s two rotary kilns in a maiden production run.

8
30 June
2020

Acquisition of additional 20% interests in Hengjaya Nickel and Ranger Nickel projects

At the Company’s Annual General Meeting in May 2020 shareholders approved the acquisition of an additional 20% interest in both the Hengjaya Nickel and Ranger Nickel projects. Following the successful completion of the A$231M Entitlement Offer announced on 19 May 2020, Nickel Mines advised Shanghai Decent of its intention to exercise its options to acquire the additional 20% interests in both the Hengjaya Nickel and Ranger Nickel Projects and the acquisitions were completed on 30 June 2020, taking Nickel Mines interest in both projects to 80%.

9
31 August
2020

Nickel Mines declares a maiden interim dividend

On 31 August 2020 Nickel Mines declared a maiden interim dividend of A$0.01 per share.

10
24 November
2020

Nickel Mines to acquire a 70% equity interest in Angel Nickel

In November 2020 Nickel Mines announced the execution of a binding Definitive Agreement with Shanghai Decent for Nickel Mines to acquire a 70% equity interest in the Angel Nickel Project, comprising four RKEF lines and power station under construction within the Indonesia Weda Bay Industrial Park ('IWIP'). In January 2021 it agreed by both parties that the Company’s equity participation in the project would increase to 80% and Nickel Mines completed acquisition on an initial 30% interest.

11
28 January
2021

Nickel Mines declares a final dividend for 2020

On 28 January 2021 Nickel Mines declared a final dividend for 2020 of A$0.02 per share.

12
12 March
2021

Nickel Mines added to ASX 200

In its March 2021 Quarterly Rebalance S&P Dow Jones Indicies announced that Nickel Mines had been added to the ASX 200 Index.

13
30 March
2021

Completion of US$175M Offering of Senior Unsecured Notes

Nickel Mines completed a US$175M inaugral offering of Senior Unsecured Notes at an interest rate of 6.5%, maturing 1 April 2024.

14
20 April
2021

Acquisition of a further 20% interest in Angel Nickel

Nickel Mines announced it had completed the acquisition of a further 20% interest in the Angel Nickel project, following payment of US$137.6M to Shanghai Decent.

15
9 September
2021

Completion of a US$150M Issuance of Senior Unsecured Notes

16
30 September
2021

Angel Nickel Project Ownership Increased to 80%