Nickel Mines increases interest in nickel pig iron Rotary Kiln Electric Furnace

By Dale Benton
An Australian nickel producer has increased its stake in an Indonesian nickel iron plant. Nickel Mines announced in a statement this week that it has i...

An Australian nickel producer has increased its stake in an Indonesian nickel iron plant.

Nickel Mines announced in a statement this week that it has increased its interest in the under-construction Rotary Kiln Electric Furnace (RKEF) plant by 35% in a deal worth $70 million.

The company’s interest in the project now stands at 60%. Nickel Mines also has a 12-month call option from the date on which the first nickel pig iron is produced from the RKEF plant to increase its ownership of the RKEF plant to 100% for an additional US$120 million.

The interest acquisition is part of a wider “landmark” Collaboration and Subscription Agreement (CSA) with Shanghai Decent and a passive strategic cornerstone investor Shanghai Wanlu Investment Co. Ltd (Wanlu).

Through the collaboration, Nickel Mines will build a 2-line RKEF plant at the Indonesian Morowali Industrial Park (IMIP) for US$200M.

The IMIP has a current production capacity of 1.5 million tonnes per annum of nickel pig iron (NPI) and 600,000 tonnes per annum of high carbon ferrochrome.
 

Related stories:

Nickel Mines lists on ASX with $200 million IPO

Australian Mines enters off-take agreement for Sconi mine cobalt, nickel and scandium

Brazilian Nickel welcomes $72mn royalty agreement with Anglo Pacific

 

Tsingshan has targeted 3 million tonnes of stainless steel per annum and so in order to meet that, NPI production requirements are expected to increase to approximately 1.95 million tonnes per annum, facilitating the requirement for additional RKEF lines within the IMIP.

It is currently anticipated that commissioning of RKEF plant will commence ahead of the contractual schedule in the June 2019 quarter.

 

Share

Featured Articles

Exyn Nexys: a 3D Mapping Instrument for Mining Professionals

Exyn Technologies presents the Exyn Nexys - a modular 3D mapping tool for construction and mining professionals

S&P's Top 10 key themes to the 2024 energy outlook

S&P Global Commodity Insights has released its latest 2024 Energy Outlook, predicting uneven balances and OPEC+ resolve will remain key risks to markets

Super-accurate, fast ore analysis

Portable PPB and SciAps have forged a strategic R&D alliance to elevate elemental analysis for gold, silver, and copper technologies

Women under-represented on mining boards

Operations

Geothermal Engineering - UK’s first zero-carbon lithium

Sustainability

ABB and Bridon-Bekaert Ropes collaborate on mine hoists

Supply Chain & Operations