RKEF Operations

Nickel Industries holds an 80% interest in the Hengjaya Nickel, Ranger Nickel and Oracle Nickel rotary kiln electric furnace (RKEF) projects located within the Indonesia Morowali Industrial Park (IMIP) and the Angel Nickel RKEF project located at the Indonesia Weda Bay Industrial Park (IWIP).

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Hengjaya Nickel
Ranger Nickel
Angel Nickel
Oracle Nickel

RKEF OPERATIONS

Hengjaya Nickel Project

Nickel Industries – 80% Interest

  • Nickel Industries holds an 80% interest in the Hengjaya Nickel Project, a project located in the IMIP comprising 2 RKEF lines with a nameplate capacity of 15kt pa
  • The Company acquired its interest in Hengjaya Nickel across several tranches for a total consideration of US$180M
  • NPI production at Hengjaya Nickel commenced in March 2019
  • In 2019 the project was awarded material tax concessions, paying no income tax for a period of 7 years followed by an additional 2-year period paying 50% of the prevailing corporate income tax rate
  • In October 2022 the Company elected to convert production from NPI to nickel matte, representing its first foray into supplying nickel intermediates to the EV battery supply chain
2023 Revenue
US$320.2M
2023 Production
19,907 tonnes
2023 Cash costs
US$12,632/tonne

RKEF OPERATIONS

Ranger Nickel Project

Nickel Industries – 80% Interest

  • Nickel Industries holds an 80% interest in the Ranger Nickel Project, a project entity comprising:
    • 2 RKEF lines with a nameplate capacity of 15kt pa
  • The Company acquired its interest in Ranger Nickel across several tranches for a total consideration of US$230.1M
  • NPI production at Ranger Nickel commenced in May 2019
  • In 2019 the project was awarded material tax concessions, paying zero income tax for a period of 7 years followed by an additional 2-year period paying 50% of the prevailing corporate income tax rate

2023 Revenue
US$271.9M
2023 Production
19,550 tonnes
2023 Cash Cost
US$12,562/tonne

RKEF OPERATIONS

Angel Nickel Project

Nickel Industries – 80% Interest

  • Nickel Industries holds an 80% interest in the Angel Nickel Project, a project located in the IWIP comprising:
    • 4 RKEF lines with a nameplate capacity of 36kt pa
    • 380MW power plant
  • The Company acquired its interest in Angel Nickel across several tranches for a total consideration of US$557.6M
  • NPI production at Angel Nickel commenced in January 2022
  • In 2022 the Project was awarded material tax concessions, paying no income tax for a period of 10 years followed by an additional 2-year period paying 50% of the prevailing corporate income tax rate

    2023 Revenue
    US$688M
    2023 Production
    49,011 tonnes
    2023 Cash Cost
    US$10,472/tonne

    RKEF OPERATIONS

    Oracle Nickel Project

    Nickel Industries – 80% Interest

    • Nickel Industries holds an 80% interest in the Oracle Nickel Project, a project located in the IMIP entity comprising:
      • 4 RKEFs with a nameplate capacity of 36kt pa
      • 380MW power plant

    • The Company acquired its interest in Oracle Nickel across several tranches for a total consideration of US$600M
    • NPI production at Oracle Nickel commenced in November 2022
    • In 2023 the project was awarded material tax concessions, paying no income tax for a period of 10 years followed by an additional 2-year period paying 50% of the prevailing corporate income tax rate

    2023 Revenue
    US$530.6M
    2023 Production
    39,859 tonnes
    Cash Cost
    US$11,289/tonne
    HPAL Operations

    Nickel Industries holds a 10% interest in the Huayue Nickel Cobalt HPAL project, currently producing low-carbon battery-grade nickel for the electric vehicle supply chain, and is acquiring a 55% interest in the Excelsior Nickel Cobalt HPAL project. Find out more about our operations.

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    Huayue Nickel
    Excelsior Nickel
    HPAL OPERATIONS
    Huayue Nickel Cobalt Project (HNC)

    Nickel Industries – 10% Interest

    • Nickel Industries holds an 10% interest in the Huayue Nickel Cobalt HPAL Project (HNC), a project entity comprising:
      • 4 x autoclave HPAL project with a nameplate capacity of 60kt pa of nickel in MHP
    • The Company acquired its interest in HNC from Shanghai Decent for a total consideration of US$270M
    • MHP production at HNC commenced in November 2021
    • In 2020 the project was awarded material tax concessions, paying zero income tax for a period of 10 years commencing the first year of commercial production followed by an additional 2-year period paying 50% of the prevailing corporate income tax rate
    HPAL OPERATIONS
    Excelsior Nickel Project (ENC)

    Nickel Industries – 27.5% Interest
(Moving to 55% Interest)

    In October 2023 the Company announced it had reached a positive final investment decision (FID) with respect to its participation and investment in Excelsior Nickel Cobalt (ENC), a next generation high pressure acid leach (HPAL) project being constructed within the Indonesia Morowali Industrial Park (IMIP) in Central Sulawesi, Indonesia.

    ENC is expected to produce 72,000 metric tons per annum of contained nickel equivalent across the three major class-1 nickel products being mixed hydroxide precipitate (MHP), nickel sulphate and nickel cathode. ENC will be the first HPAL globally with the capacity to produce these three major class-1 nickel products, all of which are suitable for use in the EV battery market.

    The Project has been awarded a 15-year corporate income tax holiday.

    Shanghai Decent, the Company’s largest shareholder and partner, will once again be providing a “capex guarantee” whereby the total construction costs will not exceed US$2.3 billion (Capex Guarantee). Importantly, the Capex Guarantee includes a tailings facility encompassing industry best practice storage and management (via dry-stack tailings), and an integrated sulphuric acid plant which will produce the majority of the Project’s power needs via renewable energy.

    The Project also comes with a commissioning guarantee to nameplate capacity and a delivery timeframe guarantee of not more than 2 years from the commencement of construction.

    DateUS$MEquity AcquiredCumulative Equity10 Business days following shareholder approval (paid)126.55.50%5.50%By 1 January 2024 (paid)189.88.25%13.75%By 1 April 2024 (paid)316.313.75%27.50%By 1 October 2024379.5016.50%44.00%By 1 July 2025126.5055.50%55.00%By 1 October 2025126.505.50%55.00%TOTAL1,265.055.00%100
    Mining Operations

    Nickel Industries excels in low-cost nickel production through its Indonesian subsidiaries. Our Hengjaya Mine is seen as a benchmark in sustainable nickel mining in Indonesia. We are committed to sustainable practices and fostering strong partnerships with local communities and industries. Find out more about our operations.

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    MINING OPERATIONS

    Hengjaya Mine

    Nickel Industries – 80% Interest

    Nickel Industries holds an 80% interest in the share capital of PT Hengjaya Mineralindo (PT Hengjaya), an Indonesian PMA company. The remaining 20% interest in PT Hengjaya is owned by the Company’s Indonesian partner, the Wijoyo family. PT Hengjaya holds a 100% interest in the Hengjaya Mine, located in the Morowali Regency, on the east coast of the province of Central Sulawesi, Indonesia.

    The Hengjaya Mine IUP permit concession area covers 5,983 hectares. In 2012 PT Hengjaya was issued a 20-year mining operation/production licence including a further 10-year extension option.

    Nickel Industries advanced the project through the various permitting, exploration, community socialisation, environmental studies and feasibility and development stages (including construction of a haul road, jetty and stockpile area) to the point where production commenced in October 2012 ahead of a maiden shipment of unprocessed ore in February 2013. A number of high-grade ore shipments were made to China and Japan over the course of 2013.

    Shortly after the introduction of the Indonesian Government’s ban on the exportation of unprocessed minerals in January 2014, production ceased at Hengjaya with Nickel Industries forced to explore in-country beneficiation options.

    In January 2019 commenced supplying ore to the Company’s 80% owned subsidiary Hengjaya Nickel, operator of the Hengjaya Nickel RKEF project and when the Ranger Nickel RKEF project commenced production in May 2019 the Hengjaya Mine also commenced supplying ore to Ranger Nickel.

    The Hengjaya Mine is one of the only large tonnage, high grade saprolite mines in close proximity to the IMIP.

    2023 Nickel Ore Production
    13,401,289 tonnes
    2023 Saprolite Ore Production
    3,832,833 tonnes
    2023 Limonite Ore Production
    9,568,456 tonnes
    2023 EBITDA
    US$87.9M

    Hengjaya Resource

    In September 2022 Nickel Industries announced an updated JORC compliant resource report within the Hengjaya project concession area. The Hengjaya Mine is one of the largest tonnage, high grade operations in close proximity to the IMIP in central Sulawesi. Using a 0.8% Ni cut-off grade, the Hengjaya Mine hosts a JORC compliant resource of 300 million dry tonnes at 1.22% Ni and 0.09% Co, containing 3,700,000 tonnes of contained nickel and 270,000 tonnes of contained cobalt as follows:

    Resource Report

    CategoryDry Tonnes (Million)NI (%)CO (%)FE (%)Measured851.30.130.4Indicated1301.20.128.6Inferred851.20.129.1Total3001.20.129.2
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