About Nickel Mines
Nickel Mines Limited ('Nickel Mines' or 'the Company') is an Australian public company focused on becoming a globally significant, low cost producer of Nickel Pig Iron ('NPI'), a key ingredient in the production of stainless steel.
Nickel Mines holds an 80% economic interest in the Hengjaya Mineralindo Nickel Mine (HM Mine), a large tonnage, high grade saprolite deposit located in the Morowali Regency of Central Sulawesi, Indonesia. For additional information click Hengjaya Resource.
Prior to the implementation of the Indonesian Government’s ban on the exportation of unprocessed minerals in January 2014, Nickel Mines operated a small scale DSO operation having advanced the HM Mine through all necessary exploration, licensing and permitting stages to achieve “clean and clear” status for the direct exporting of its nickel ore.
Shortly after the export ban was enacted, mining operations were suspended and Nickel Mines was forced to pursue ore sales to domestic producers and explore in-country beneficiation options.
The export ban of unprocessed minerals was principally sanctioned 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.
Tsingshan, China’ largest stainless steel producer 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 Indonesian Morowali Industrial Park (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 September 2017 this relationship culminated in Nickel Mines executing a Collaboration and Subscription Agreement with Tsingshan. This unprecedented strategic partnership will see Nickel Mines and Tsingshan collaborate on the funding and construction of 2 RKEF lines to produce 150kt per annum of NPI containing 15kt of nickel metal equivalent with ore from the HM Mine being the predominant feedstock to the plant. Nickel Mines now holds a 60% interest in the RKEF Project. Construction of the RKEF Project is progressing well and it is currently anticipated that commissioning of RKEF plant will commence ahead of the contractual schedule in the June 2019 quarter.
Nickel Mines was welcomed to the Official List of the Australian Stock Exchange ('ASX') on Monday 20 August 2018. A copy of the Company's prospectus can be seen here. Nickel Mines Limited Prospectus.