Posted on 08 Mar 2023
Nickel Industries has updates for two projects with partner Shanghai Decent. The Excelsior nickel cobalt (ENC) project, also known as the Dawn HPAL+ project, will have a higher nameplate production capacity and lower capital expenditure, and two of the Angel nickel project’s rotary kiln-electric furnace (RKEF) lines will be switched to nickel matte production lines.
Meanwhile, Indonesia is seeking ways to strengthen its nickel supply chain and stablise the downstream market in order to sustain supply of existing projects and keep a stronger position in international trade. Some Indonesia-based traders says the Ministry of Energy and Mineral is considering cancelling a tax rebate for nickel smelting plants, Kallanish notes.
According to Nickel Industries' announcement released on Monday, for the ENC project, the nickel equivalent annual production capacity will be increased to 67,000 tonnes while the total construction and commissioning costs (through to nameplate capacity) will be reduced to less or equal to $2.3 billion from the previously stated $2.5 billion.
In addition, for this project, not only mixed hydroxide precipitate (MHP) but also nickel sulphate and nickel cathode will be produced in order to provide Nickel Industries with "significant operating flexibility through the cycle."
Nickel Industries expects this project will benefit from existing and future laterite resources it has identified, as well as the infrastructure at Indonesia Morowali Industrial Park. It plans to start the construction of this project during Q4 2023 or Q1 2024, and the commissioning will be no later than 24 months after the start of the project construction.
Currently, it is still conducting the feasibility study with partner Shanghai Decent. Nickel Industries will own a 60-70% equity interest in this ENC project and Shanghai Decent will own a 30-40% stake.
For the Angel nickel project, about $2 million will be spent on the transition to nickel matte production from nickel pig iron (NPI) RKEF processing. This transition will probably be realised no earlier than 2024 due to ongoing converter construction.
Source:Kallanish
