Posted on 27 Aug 2024
Australian miner Nickel Industries has inked deal to acquire the Sampala project. This is three highly prospective, advanced, contiguous nickel IUPs (mining licenses) covering the 6,654-hectare mine in Indonesia, Kallanish Power Materials notes.
Nickel Industries says in a statement that it has signed conditional share purchase agreements to acquire PT Erabaru Timur Lestari (ETL), PT Mandiri Jaya Nickel (MJN) and CV Gita Flora (GF).
Initial JORC 2012 compliant mineral resources totalling 187 million dry metric tonnes (dmt) of 1.2% nickel and 0.09% cobalt (2.3mt of contained nickel metal and 0.2mt of cobalt) has been estimated in 900ha of the prospective and mapped laterite area of 4,700ha. Only 20% of a total 4,700ha of prospective mapped laterite is drilled.
The IUPs are located in close proximity to the company’s existing refining operations within the Indonesia Morowali Industrial Park (IMIP) and the company’s Hengjaya mine (HM).
A majority of acquisition payments are expected in 2026 and the project development capex is currently expected to be similar to HM.
"With an initial resource of 2.9mt of contained nickel metal in just 900ha explored and over 4,700ha of mapped prospective laterite, the opportunity to increase this resource substantially is significant," Nickel Industries managing director Justin Werner says.
With 1.6% saprolite ore currently being priced at $37/wet metric tonne (wmt) CIF and 1.3% limonite at $22/wmt CIF, as well as the logistics being only 56km by haul road from the IMIP, he expects the Sampala project to deliver similar economics to the firm's HM operation. The firm has seen Ebitda of $42 million for a quarter for HM operation.
He adds the initial Sampala project resource and HMs current resource of 3.7m contained nickel metal tonnes will increase the firm's total nickel resource inventory to an excess of 5mt of contained nickel metal.
Source:Kallanish Power Materials
