Australia-based Nickel Mines has signed a Memorandum of Understanding (MoU) with Shanghai Decent Investment (SDI) for a 70pc stake in PT Angel Nickel Industry (ANI) in Indonesia.
The JV will focus on building four next-generation 54 kilo-volt amp rotary kiln electric furnace lines. This will enhance production capacity to 36,000mt annually. The project will also include a 380-megawatt coal-fired power plant. SDI will take the lead role in the design, construction and operation of the ANI project.
Nickel Mine’s 70pc stake is worth $490mn which will be under two staged payments. In the first instalment, $210mn will be paid by the end of Q1 of 2021 which will secure 30pc interest of the company and the remaining 40pc will be secured after the payment of $280mn in the second instalment.
The JV places Nickel Mine in Indonesia’s rapid-growing nickel production centre. Nickel Mine’s 70pc stake represent 25,000mt nickel produced each year for the company. The company’s existing mines, Hengjaya Nickel and Ranger Nickel projects are both in Indonesia together produce 24,000mt of nickel per annum.