Australia-based Nickel Mines has inked a Memorandum of Understanding (MoU) to acquire 70pc stake in Indonesia’s Angel Nickel project.
Nickel Mines will partner with Shanghai Decent Investment according to the MoU to build and operate four of the next generation rotary kiln electric furnace (RKEF) within the Welda Bay industrial park. This will likely double Nickel Mines’ attributable nickel production profile in a period of two years.
The Angel Nickel project comprises four RKEF lines which have the potential to produce 36,000mt of equivalent contained nickel in nickel pig iron (NPI). It also includes 380MW power plant and ancillary facilities required to operate each of the RKEF lined and the power plant.
Initially, Nickel Mines will acquire 30pc interest in Angel Nickel and 30pc of all shareholder loans due Shanghai Decent at a worth of $210mn by the end of March 2021. In the second half of the 70pc acquisition, the remaining 40pc stake in Angel Nickel and 40pc shareholder loans due Shanghai Decent will be attained for $280mn which will be finalised by the end of 2021. The total cost of construction of Angel Nickel would not exceed $700mn, if it exceeds, Shanghai Decent would cover it.