Centaurus Glencore Nickel Offtake Strengthens Jaguar Project Financing Path

Centaurus Glencore

Centaurus Glencore nickel offtake has given the Jaguar nickel project a stronger commercial base as Centaurus Metals moves toward financing and development in Brazil. The binding agreement secures a major customer for future high-grade nickel concentrate and supports the company’s plan to reach a final investment decision.

Glencore will purchase 20,000 dry metric tonnes per year of 32% nickel concentrate from Jaguar for an initial five-year period starting in 2029. The volume is equivalent to about 6,400 tonnes per year of contained nickel.

The concentrate will be shipped to Glencore’s Sudbury smelting operations in Canada for processing. This gives the Centaurus Glencore nickel offtake clear downstream integration and links Brazilian mine development with established North American nickel smelting capacity.

Jaguar Nickel Project Gains Commercial Validation

The Jaguar nickel project is expected to produce 65,000 tonnes per year of nickel concentrate, meaning the Glencore contract covers roughly one-third of planned output. This contracted volume improves project bankability because lenders often require visible offtake before supporting mine development.

Pricing will be linked to the London Metal Exchange nickel cash settlement price. Nickel payability will vary with market conditions, while copper and cobalt by-products contained in the concentrate will also receive payability.

At current nickel prices of around $17,200 per tonne, the agreement could generate more than $450 million in revenue during the initial contract period. That revenue visibility matters as Centaurus works with Brazil’s national development bank on potential debt financing and seeks a strategic investor.

The agreement remains conditional on key development milestones. Centaurus must make a final investment decision by 30 September 2026, complete half of tailings dam construction by December 2027, and achieve first concentrate production by 15 January 2029.

Nickel Market Recovery Supports New Sulphide Supply

The Centaurus Glencore nickel offtake comes as nickel markets show signs of tightening after several years of weak pricing. Rapid growth from Indonesian laterite supply pressured global prices, but recent gains above $17,000 per tonne suggest the market may be moving closer to balance.

Jaguar’s sulphide concentrate profile gives the project strategic relevance. High-grade concentrate can feed conventional smelting routes and may become more valuable if buyers seek diversified nickel units outside the dominant Indonesian laterite chain.

Centaurus expects Jaguar to produce an average of 22,600 tonnes per year of contained nickel during its first seven years. The proposed 3.5 million tonne per year operation is forecast to produce nickel at all-in sustaining costs of about $9,764 per tonne.

The project also carries industrial history. Centaurus acquired Jaguar in 2019 after it was previously owned by Vale, giving the company a known Brazilian nickel asset at a time when battery, stainless steel, and alloy supply chains remain focused on secure feedstock.

The Metalnomist Commentary

The Centaurus Glencore nickel offtake shows that disciplined sulphide nickel projects can still attract strategic buyers despite years of weak nickel prices. If the market keeps tightening, high-grade concentrate with smelter-ready characteristics could regain importance in global nickel supply chains.

NexMetals Botswana nickel project advances with EXIM financing plan

NexMetals

NexMetals Botswana nickel project moved closer to funding after a US EXIM letter of interest. The NexMetals Botswana nickel project could receive up to $150mn to redevelop Selebi and Selkirk. The NexMetals Botswana nickel project targets nickel, copper, cobalt, and platinum group metals.

US EXIM financing under CTEP

EXIM signaled support on 17 July with a non-binding letter of interest. The potential loan carries a maximum 15-year tenor. The package falls under EXIM’s China and Transformational Exports Program. As a result, EXIM prioritizes projects that strengthen US competitiveness in critical minerals. Eligible US procurement could unlock cost-effective access to advanced mining technology.

However, EXIM requires a full application and diligence before commitment. NexMetals must demonstrate technical feasibility and bankable project economics. The company will also outline procurement pathways for US goods and services.

Resource base and project milestones

Selebi hosts an indicated 3mn t at 0.98% nickel and 0.9% copper. That equals 29,500t nickel and 27,100t copper contained. Inferred resources add 227,000t nickel and 371,000t copper. Selkirk’s inferred resources include 108,000t nickel and 132,000t copper. The deposit also contains 775,000oz palladium and 174,000oz platinum.

Therefore, the mines could anchor a regional battery metals hub. The project aligns with US and allied EV supply chains. It also supports Botswana’s push into value-added processing.

Meanwhile, the financing roadmap remains critical to timing. A final decision depends on diligence outcomes and market conditions. Offtake structuring and equipment sourcing will shape the construction path.

The Metalnomist Commentary

EXIM’s early signal gives the project strategic momentum, not certainty. If NexMetals converts the LOI, Botswana gains a credible nickel sulphide supplier with PGM credits. The next hurdle is disciplined feasibility and a financing stack resilient to nickel price volatility.

Nickel Industries Indonesian Output Shows Ore Pressure Despite HPAL Growth

Nickel Industries, Indonesian

Nickel Industries Indonesian output was mixed in the first quarter as lower mining volumes and declining nickel grades contrasted with higher nickel pig iron and mixed hydroxide precipitate production. The Australia-based producer reported weaker ore output but stronger downstream processing across its Indonesian RKEF and HPAL assets.

Nickel Industries Indonesian output reflects the increasingly complex operating environment for nickel producers in Indonesia. Mining permits, ore grades, sulphur availability and downstream ramp-up timing are all shaping production performance.

Nickel Industries Indonesian output also shows why Indonesia’s nickel market can no longer be viewed only through capacity additions. Feedstock access and ore quality are becoming just as important as new processing plants.

Total nickel ore production fell by 30% from a year earlier to 3.96mn wet metric tonnes in January-March. However, output almost tripled from the previous quarter after mining activity recovered from RKAB quota delays late last year.

RKAB Quota Recovery Supports Ore Flow but Grades Weaken

Nickel Industries received 14.3mn wmt of 2026 RKAB nickel ore quota this year. This was 36% higher than its total approved quota of 10.5mn wmt in 2025.

The higher quota helped production recover from the December quarter, when mining was disrupted by RKAB delays. The company also plans to apply for additional RKAB quotas later this year.

The Hengjaya mine supplies ore to Nickel Industries’ RKEF and HPAL plants. These facilities produce nickel pig iron for stainless steel markets and mixed hydroxide precipitate for battery material supply chains.

Total NPI output from the Hengjaya, Ranger, Oracle and Angel RKEF operations rose by 4.4% year on year and 1.7% quarter on quarter to 274,086t.

However, nickel-contained production fell to 30,264t because the average nickel content of NPI dropped to 11% from 12.1% a year earlier. This is a critical signal for margins because lower grades reduce metal output even when furnace volumes rise.

The result shows how Indonesian nickel producers face a tightening relationship between ore availability and processing efficiency. Higher RKEF output does not automatically mean stronger nickel production if feedstock grades weaken.

HPAL Growth Continues as ENC Start-Up Moves to Second Quarter

Nickel Industries’ Huayue Nickel Cobalt HPAL project produced 21,526t of nickel and 2,370t of cobalt in MHP form during the first quarter. Nickel output rose by 1.7% from a year earlier, while cobalt output increased by 23%.

This growth strengthens Nickel Industries’ exposure to battery materials. MHP remains a key intermediate product for nickel sulphate and other battery chemical supply chains.

The company’s next major step is the Excelsior Nickel Cobalt HPAL project. Commissioning has been delayed to the second quarter, with full ramp-up targeted by the end of October.

ENC had previously been expected to start commissioning in the first quarter. The delay matters because HPAL projects are technically complex and depend on stable feedstock, acid supply, utilities and commissioning discipline.

Nickel Industries said it has enough sulphur inventory to support ENC’s ramp-up until the third quarter. The company previously bought sulphur at an average price of $450/t.

Sulphur availability is now a strategic issue for HPAL producers. Any disruption in sulphur or sulphuric acid supply can raise costs and slow production growth across Indonesia’s battery nickel chain.

The company also plans to list nickel cathode produced at ENC on both the London Metal Exchange and Shanghai Futures Exchange. Exchange approval would support market acceptance and improve the project’s commercial flexibility.

Nickel Industries increased its stake in ENC by 2% for $46mn on 1 April, lifting its interest to 46% and making it the project’s largest shareholder. This gives the company greater exposure to Indonesia’s move from NPI and MHP toward Class I nickel products.

The broader implication is clear. Nickel Industries is moving across the Indonesian nickel value chain, from ore mining and RKEF production into HPAL, MHP and exchange-deliverable cathode.

The Metalnomist Commentary

Nickel Industries’ quarter shows that Indonesia’s nickel growth is becoming more constrained by ore quality, RKAB permits and sulphur logistics. Capacity still matters, but the winners will be producers that control feedstock, manage HPAL complexity and secure recognised Class I nickel routes.

Nickel Industries RKAB Quota Secures Feedstock for Indonesian HPAL Expansion

RKAB

Nickel Industries RKAB quota approval gives the Australian producer a stronger feedstock position in Indonesia’s tightening nickel market. The company has secured a 2026 nickel ore quota of 14.3mn wet metric tonnes, supporting both its rotary kiln electric furnace operations and its expanding battery-grade nickel platform.

The approved quota represents a 36pc increase from the company’s 10.5mn wmt quota in 2025. Of the total, up to 6mn wmt of saprolite ore will supply Nickel Industries’ RKEF operations, while 8.3mn wmt of limonite ore will support feed requirements for the Excelsior Nickel Cobalt HPAL project.

Nickel Industries RKAB quota approval follows the company’s receipt of an environmental permit from Indonesia’s environment ministry. The AMDAL permit is valid for five years and could support a further quota increase to around 19mn wmt in 2026, giving the company room to apply for additional feedstock later this year.

ENC HPAL Project Raises Nickel Industries’ Battery Materials Exposure

The ENC HPAL project is central to Nickel Industries’ shift beyond ferronickel and nickel pig iron-linked operations. The project is expected to be commissioned in the first quarter and is designed to produce 72,000 t/yr of nickel in mixed hydroxide precipitate, nickel sulphate, and nickel cathode.

This matters because limonite ore availability is becoming increasingly strategic in Indonesia. HPAL plants require consistent limonite feed to produce MHP and downstream nickel chemicals for batteries. Any restriction in ore quotas can directly affect project ramp-up schedules, operating rates, and customer supply planning.

Nickel Industries RKAB quota approval therefore gives the company an advantage over producers facing sharper quota cuts. It also supports the company’s ability to position ENC as part of Indonesia’s growing battery materials supply chain, where nickel intermediate production remains a major source of global supply growth.

Indonesia’s Quota Tightening Keeps Ore Supply Risk High

Indonesia’s wider nickel market remains under pressure despite Nickel Industries’ higher quota. The government plans to cut the 2026 RKAB nickel production quota to 260mn-270mn t from about 379mn t in 2025. That reduction signals a more controlled policy environment and tighter ore availability across the sector.

The impact is already visible. Weda Bay Nickel reportedly saw its RKAB cut by 70pc to 12mn wmt this year, showing that quota approvals are becoming more selective. Producers with stronger environmental approvals and clearer downstream integration may be better positioned, while others face greater uncertainty.

Nickel Industries also experienced the operational risk of delayed approvals. Its nickel ore production fell 77pc year on year to 1.67mn wmt in October-December 2025 because of downtime linked to RKAB delays. The company has since resumed operations at Hengjaya and expects mine sales to recover, but the episode shows how regulatory timing can quickly affect Indonesian nickel output.

The Metalnomist Commentary

Indonesia’s nickel market is entering a more disciplined phase where permits, ESG compliance, and quota access matter as much as installed capacity. Nickel Industries’ approval is positive, but the wider RKAB tightening means ore security will remain one of the biggest risks for nickel and battery materials supply.

Chengtun halts Indonesian nickel matte project as battery materials economics shift

Chengtun

Chengtun halts Indonesian nickel matte project after reassessing the market outlook. The company says the investment no longer meets expectations. As a result, Chengtun halts Indonesian nickel matte project before construction begins.

The paused plan targeted Weda Bay on Halmahera, Indonesia. Chengtun formed a venture with a planned $245mn investment. The facility aimed for 40,000 t/yr of nickel matte in nickel equivalent.

Why Chengtun paused Weda Bay expansion

Chengtun halts Indonesian nickel matte project while it restructures its Indonesian growth plan. The project missed its original late-2023 launch window. However, it never advanced beyond planning and preparation.

Chengtun will dissolve the ChengMach Nickel venture after the halt. The decision reduces near-term supply growth expectations at Weda Bay. Therefore, market participants may reassess which projects stay financeable.

Meanwhile, Chengtun keeps operational flexibility through its Youshan Nickel project at Weda Bay. The site can switch output across high-nickel matte, low-nickel matte, and NPI. That flexibility helps the company respond faster to changing price signals.

What it means for nickel sulphate and NCM battery supply

Nickel matte feeds nickel sulphate production for battery materials. Nickel sulphate supports NCM precursor manufacturing alongside cobalt and manganese sulphates. As a result, the pause signals pressure across the upstream EV battery chain.

Battery producers still require stable nickel units and consistent chemistry. However, producers now scrutinize conversion routes and margin stacking more aggressively. Therefore, integrated refiners may capture advantage when they control feed and logistics.

The decision also highlights Indonesia’s evolving role in battery metals. Indonesia still offers scale and resource depth at Weda Bay. Yet investors now demand clearer returns across sulphate, precursor, and cathode pathways.

The Metalnomist Commentary

Chengtun halts Indonesian nickel matte project as the industry shifts from growth-at-all-costs to margin discipline. However, flexible plants will still win when demand rebounds. The next cycle will reward operators who can pivot between battery and stainless markets.

Indonesia Battery Ecosystem Project Moves Forward With New Chinese Partnership

Aneka Tambang

The Indonesia battery ecosystem project is moving into a new phase with a fresh Chinese partnership. Antam, Industri Baterai Indonesia, and HYD Investment signed a framework agreement to develop an integrated battery ecosystem in Indonesia. This follows the exit of LG Energy Solution in 2025. As a result, the Indonesia battery ecosystem project remains alive and strategically important.

The change in partners matters because the project scale remains significant. Antam said the planned investment value is around $5-6 billion. A joint feasibility study will now define the next steps. Therefore, the Indonesia battery ecosystem project is shifting from partner transition into renewed execution planning.

HYD brings a strong industrial base to the table. The consortium includes Zhejiang Huayou Cobalt, EVE Energy, and Daaz Bara Lestari. That mix adds processing, battery, and investment capability. Consequently, the project gains a broader foundation across the battery value chain.

Indonesia Nickel Battery Chain Expands From Ore to Cells

The Indonesia nickel battery chain is central to this project’s logic. Planned facilities include an RKEF plant with 100,000 t/yr of nickel metal equivalent capacity. The project also includes an HPAL plant with 50,000 t/yr of nickel metal equivalent capacity. Therefore, upstream and midstream nickel conversion remain core pillars.

The downstream ambition is equally important. The project is expected to produce 105,000 t/yr of precursors and 30,000 t/yr of cathode materials. It also aims to build 20 GWh per year of nickel-based battery capacity. As a result, the Indonesia battery ecosystem project goes well beyond raw material processing.

Battery recycling also appears in the plan. The proposed recycling capacity is capped at 10,000 t/yr. That addition supports a more circular industrial model. Meanwhile, Antam will supply the nickel ore required for the project.

Antam Battery Project Reinforces Indonesia’s Downstream Strategy

The Antam battery project fits directly into Indonesia’s long-term downstream policy. Jakarta wants to build a local battery industry from mining to refining to final battery production. This new agreement supports that goal with another large integrated platform. Therefore, the project has national strategic value, not just commercial relevance.

This also shows Indonesia’s flexibility in partner management. LGES may have exited, but the broader industrial objective did not disappear. Instead, the project has been restructured around a new consortium. As a result, Indonesia continues pushing its battery ambitions despite partner turnover.

Antam’s role is becoming even more central. The company is involved in this project and also has a separate EV battery joint venture with CATL. That CATL-linked venture is expected to start operations by 2026. Consequently, Antam is emerging as one of the key anchors in Indonesia’s nickel battery chain.

The Metalnomist Commentary

This partnership matters because it shows Indonesia’s battery strategy is bigger than any one foreign partner. The country is still determined to convert nickel strength into downstream battery power. If execution improves, Indonesia could become one of the most integrated battery manufacturing hubs outside China.

Kabanga nickel project secures $60mn loan to advance development

Kabanga Nickel Project

The Kabanga nickel project will receive up to $60mn from Taurus Mining Finance. The Kabanga nickel project drew a first $20mn tranche on 29 August. The Kabanga nickel project aims to accelerate mine development and reach key milestones.

Funding structure and ownership

Lifezone Metals arranged a loan of up to $60mn with Taurus. Additional drawings depend on performance and milestone delivery. The company now owns 100% of Kabanga. BHP sold its prior 17% stake in July for up to $83mn. The facility supports mine construction and early works. It also strengthens working capital for long-lead items.

Revised plan and output profile

Lifezone updated the mine plan in April. The design targets a 3.4mn t/yr underground mine and concentrator. A July feasibility study outlines 902,000t nickel in concentrate over 18 years. The project also expects 134,000t copper and 69,000t cobalt in concentrate. The staged debt supports critical path activities. It also aligns cash flows with ramp-up timing.

Market context and strategic relevance

Global nickel markets face mixed signals. Battery demand grows, yet class-II supply weighs on prices. High-grade sulphide feed remains strategic for battery supply chains. Kabanga’s concentrate mix diversifies regional supply. The financing lowers execution risk. It also positions Lifezone for downstream partnerships.

The Metalnomist Commentary

Milestone-linked funding is prudent in a volatile nickel market. The ownership simplification post-BHP exit may speed decisions and offtake talks. Watch capex discipline and timetable risk as underground development advances.

Hanrui Indonesian Nickel Smelter Nears Completion With Hot Commissioning Start

Hanrui Indonesian

Hanrui Indonesian nickel smelter development has moved into hot commissioning, signalling that Nanjing Hanrui’s delayed nickel matte project in Central Sulawesi is nearing completion. The Chinese cobalt producer launched the commissioning phase on 10 April at the Huabao Industrial Park in Morowali.

The Hanrui Indonesian nickel smelter is designed to produce 20,000 t/yr of nickel matte on a nickel metal equivalent basis. The project will use oxygen-enriched continuous blowing technology to convert nickel feedstock into matte for downstream processing.

Hanrui Indonesian nickel smelter progress matters because Indonesia remains the centre of global nickel capacity growth. New matte projects help connect Indonesian nickel resources with battery materials supply chains, especially where producers need feedstock for nickel sulphate and other battery-grade products.

Hot Commissioning Marks Final Step Before Commercial Output

Hot commissioning means production lines are being tested under operating conditions before full commercial production begins. This stage is important because it tests equipment integration, process stability, safety systems and product quality.

Hanrui had originally planned to start production in May 2025, but later deferred the schedule to March 2026. The start of hot commissioning now suggests the company is moving closer to operational readiness after earlier delays.

The project’s location in Morowali gives Hanrui access to one of Indonesia’s most important nickel industrial clusters. Morowali has become a major processing centre for Chinese-backed nickel investments, supported by integrated infrastructure, smelting capacity and downstream materials ambitions.

Chinese Producers Expand Nickel Matte Capacity in Indonesia

Hanrui’s project forms part of a broader Chinese investment wave in Indonesian nickel processing. Chinese companies are building matte, mixed hydroxide precipitate, ferronickel and other nickel products to serve both stainless steel and battery markets.

Huayou has also started construction of its Huaxing nickel matte project at the Indonesia Pomalaa Industry Park. That project is planned for 40,000 t/yr of nickel matte on a nickel metal equivalent basis, although Huayou has not disclosed its construction timeline or start-up date.

The expansion of nickel matte capacity gives Chinese producers more flexibility in feedstock flows. It also strengthens Indonesia’s position as a processing base, not only an ore supplier.

However, new capacity still faces execution risks. Power supply, sulphur availability, environmental controls, commissioning performance and market prices will determine how quickly these projects move from nameplate capacity to stable commercial production.

The Metalnomist Commentary

Hanrui’s hot commissioning shows that Indonesia’s nickel buildout continues despite delays and market uncertainty. The strategic issue is whether new matte capacity can ramp smoothly enough to support battery supply chains without adding further pressure to an already competitive nickel market.

Nickel Industries Hengjaya Mine Suspension Raises New Risks for Indonesia Nickel Supply

Nickel Industries

Nickel Industries Hengjaya mine suspension has introduced fresh uncertainty into Indonesia nickel supply. The company halted all operations after a fatal incident on 25 March. The suspension affects its Hengjaya mine in Morowali. As a result, Nickel Industries Hengjaya mine suspension now matters beyond one site.

The timing is especially sensitive for the company’s wider growth plan. Hengjaya recently secured a 2026 RKAB nickel ore quota of 14.3mn wmt. The company also planned to seek additional quota later this year. Therefore, the operational pause could affect mining momentum and project sequencing.

The incident also connects directly to downstream expansion. The fatal accident occurred on the haul road near infrastructure for the slurry plant and dry stacked tailings facility. Those works support the Excelsior Nickel Cobalt project. Consequently, investors will now watch both safety findings and project timing more closely.

Hengjaya Mine Operations Face Unclear Restart Timing

Hengjaya mine operations now depend on the outcome of the government investigation. Indonesia’s energy and mineral resources ministry is expected to begin its review immediately. However, the company has not disclosed when operations may restart. That leaves near-term mine supply visibility weak.

This uncertainty matters because Hengjaya is not a minor asset. Nickel Industries owns 80pc of the mine. It is a core upstream source for the company’s Indonesian nickel position. Therefore, even a temporary disruption could affect ore flow planning and internal coordination.

The broader market will also pay attention to regulatory response. Indonesian mining incidents often trigger tighter scrutiny on operating practices and site controls. That can slow activity beyond the initial suspension period. Meanwhile, safety performance remains critical for companies expanding aggressively in the country.

ENC HPAL Project Progress Now Faces Greater Market Attention

ENC HPAL project development now becomes the second major issue for Nickel Industries. The project is expected to be commissioned in the first quarter of this year. It is designed to produce 72,000 t/yr of nickel. Output is planned as MHP, nickel sulphate, and nickel cathode.

That production mix gives the project importance across both stainless steel and battery materials chains. The company had planned to ramp up ore supply through larger RKAB quotas. However, the Hengjaya interruption may complicate that path. As a result, the market will focus on whether commissioning stays on schedule.

For Indonesia nickel supply, this event highlights a recurring industry challenge. Rapid expansion creates pressure on mining, logistics, and downstream integration at the same time. Safety incidents can quickly expose those weak points. Therefore, execution quality matters as much as capacity ambition.

The Metalnomist Commentary

This suspension is important because it touches both ore supply and downstream nickel conversion. Indonesia’s nickel industry still grows fast, but speed does not remove operational risk. If the restart takes time, the market will reassess how resilient integrated nickel projects really are.

BHP exits Kabanga nickel project as Lifezone assumes full control

BHP

BHP exits Kabanga nickel project, selling its 17% stake to Lifezone Metals for up to $83mn. The transfer gives Lifezone 100% of Kabanga Nickel Ltd and full offtake rights. The move reflects BHP’s broader nickel retrenchment during a prolonged market slump.

Deal terms and strategic reset

Lifezone now owns KNL, which holds 84% of Tembo Nickel in Tanzania. The Tanzanian government retains a 16% stake in Tembo Nickel. Lifezone targets a 2026 final investment decision on the $2.49bn complex. The design pairs a mine with a hydrometallurgical refinery for battery-grade material. Nameplate output targets 50,000 t/yr of nickel in concentrate after ramp-up.

Project outlook and market headwinds

Nickel prices remain under pressure from Indonesian surpluses and softer demand. LME cash prices have fallen over 40% since early 2023. Economics across new projects have therefore tightened materially. BHP earlier placed Nickel West on care and maintenance. It plans a decision on that asset’s future by early 2027. Against this backdrop, BHP exits Kabanga nickel project to sharpen portfolio focus.

Lifezone frames Kabanga as a premier undeveloped sulphide deposit. Hydromet refining could deliver cleaner, higher-quality battery feed. The project aims to support EV supply chains with secure, traceable nickel. However, six years to full ramp leaves execution risk. Financing, power, and permitting will be decisive for timelines.

The Metalnomist Commentary

This handover trades super-major capital for specialist focus. If Lifezone proves its hydromet route at scale, Kabanga could reset African nickel. Yet market discipline and offtake financing must align before shovels truly matter.

Nickel Industries HPAL Expansion Targets Indonesian MHP Growth Through Acquisitions

Tsingshan

Nickel Industries HPAL expansion will move forward through acquisitions rather than new project development as Indonesia tightens control over additional high pressure acid leach capacity. The Australian producer will acquire stakes in two MHP projects next to its existing Excelsior Nickel Cobalt operation in Central Sulawesi.

Nickel Industries HPAL expansion is strategically important because Indonesia has stopped issuing licences for new HPAL developments since late 2025, according to the company. That makes existing permitted projects increasingly valuable to producers seeking battery-grade nickel growth.

Nickel Industries HPAL expansion covers the planned Teluk Metal Industry and Chengsheng New Energy projects. Together, the stakes would give NI attributable MHP capacity of almost 17,000 t/yr.

Both projects are located in the Indonesia Morowali Industrial Park and will use ore from NI’s Sampala mine. Their output will feed the electric vehicle battery supply chain.

TMI and CNE Add MHP Capacity Around Existing ENC Platform

NI will pay $169mn for a 17.5% stake in the Teluk Metal Industry HPAL project. TMI has planned nameplate MHP capacity of 38,640 t/yr, giving NI 6,775 t/yr of attributable output.

The transaction also carries construction protection from Tsingshan. The Chinese nickel and stainless steel producer has guaranteed that NI’s investment will be capped at $169mn and that TMI will reach nameplate production by September 2027.

This lowers construction risk for NI and reinforces its relationship with Tsingshan, which already owns an indirect 44% stake in the ENC project.

TMI’s remaining ownership includes Singapore-based Sumber International Investment and a South Korean-Japanese consortium involving LS MnM, Hanwa and another strategic investor. The structure shows how Asian industrial groups are positioning themselves around Indonesian battery nickel supply.

NI is also pursuing a 36% stake in the Chengsheng New Energy HPAL project together with a local partner. The acquisition will be funded by transferring 30% of their combined ownership in the Sampala nickel mine.

CNE has MHP capacity of 28,357 t/yr, with 10,208 t/yr attributable to NI. Commissioning is expected by mid-2027.

The CNE transaction still requires shareholder approval because an NI director is associated with the selling investment firm. That adds a governance step before completion.

Indonesia Licensing Limits Increase Value of Existing HPAL Assets

Indonesia’s decision to stop issuing new HPAL licences changes the economics of nickel expansion. Producers can no longer rely on greenfield development to add battery-grade processing capacity.

This gives existing permitted projects a scarcity premium. Companies seeking growth must acquire stakes, partner with current licence holders or expand existing operations.

For NI, TMI and CNE extend the company’s battery nickel platform around ENC. The 46%-owned ENC project is preparing to produce nickel cathode and nickel sulphate, giving NI exposure further downstream than MHP alone.

The strategy also integrates mining and processing. Ore from the Sampala project will supply both TMI and CNE, linking captive feedstock with HPAL conversion and battery-material output.

That integration matters because Indonesia’s nickel industry is increasingly constrained by ore availability, regulatory approvals and government efforts to manage oversupply.

The policy shift could support nickel prices by slowing future HPAL growth. But it also raises the value of projects already holding development rights.

For NI, acquisitions therefore become more than a growth option. They are now the main route to expanding Indonesian MHP production under a tighter licensing regime.

The Metalnomist Commentary

Indonesia’s HPAL licensing freeze is turning permitted projects into strategic assets. Nickel Industries is responding by buying access to existing capacity, showing how policy can shift competition from project development to asset acquisition.

Sumitomo Ambatovy Nickel-Cobalt Exit Marks Costly Retreat From Madagascar Laterite Project

Sumitomo

Sumitomo Ambatovy nickel-cobalt exit marks a major strategic retreat from one of the world’s largest laterite nickel operations. The Japanese trading and mining group will divest its 54.17% stake in Madagascar’s Ambatovy project to Ambatovy Mineral Resources Investment.

The Sumitomo Ambatovy nickel-cobalt exit is unusually costly. The transaction value is negative $418mn, meaning Sumitomo will pay to leave the asset after more than two decades of involvement.

The Sumitomo Ambatovy nickel-cobalt exit reflects years of operational instability, high costs and weak profitability. Sumitomo joined Ambatovy in 2005 and invested around $3bn, but the project generated cumulative losses of about ¥400bn.

The sale is expected to close in the first half of Sumitomo’s financial year ending 31 March 2027. Korea Mine Rehabilitation and Mineral Resources will retain its 45.82% stake.

Operational Instability Undermines a Strategic Nickel Asset

Ambatovy remains strategically important because it produces refined nickel and cobalt. These materials serve stainless steel, battery raw materials, superalloys and industrial supply chains.

However, the project has struggled to operate consistently. Ambatovy combines laterite mining, slurry transport and refining, making it a complex integrated operation with high technical and maintenance demands.

The project was suspended in February before Cyclone Gezani struck eastern Madagascar. It has not yet fully restarted, although market participants expect operations to resume during the current quarter.

Recovery efforts are still continuing. The project has also faced slurry pipeline damage and other processing issues in previous years, which affected output and reliability.

Ambatovy produced about 30,000t of refined nickel in 2025. Cobalt output was estimated at roughly 10% of nickel production.

That production profile gives the asset continuing supply-chain relevance. But strategic metal exposure alone cannot offset weak operating economics if reliability, costs and weather-related risks remain unresolved.

New Ownership Faces Production Reliability Test

AMRI, the buyer, is a UK-based consortium led by mining investment firm Essenwood and South African private equity firm Zungu Investments. The transaction gives the new group control of Sumitomo’s stake in a difficult but potentially valuable nickel-cobalt platform.

For Sumitomo, the divestment removes a long-running drag on earnings. The company expects to record a loss of about ¥70bn in its consolidated April-June results and a non-consolidated loss of about ¥85bn for the full financial year.

Sumitomo said tax effects should limit the net consolidated impact, and the transfer has already been included in its full-year earnings forecast.

For the nickel market, the key issue is not ownership alone. The immediate question is whether the new structure can stabilise output, repair operating weaknesses and restore confidence in Ambatovy’s supply.

Madagascar nickel-cobalt supply remains strategically relevant as buyers look beyond Indonesia-dominated nickel growth. But Ambatovy must prove that it can deliver refined nickel and cobalt reliably before it can regain stronger market importance.

The sale also highlights a broader industry lesson. Large laterite nickel projects can offer scale and battery-metal exposure, but they often carry high capital intensity, technical risk and sensitivity to market cycles.

The Metalnomist Commentary

Sumitomo’s exit shows that nickel-cobalt scale is not enough when operating reliability and cost control fail. Ambatovy’s next phase will depend on whether new owners can turn a strategically valuable asset into a commercially stable supplier.

Jogmec FPX nickel exploration in Canada targets low-carbon battery metals

Nickel

Japan’s Jogmec FPX nickel exploration in Canada signals a deeper strategic push into secure battery metal supply. The partners are testing awaruite nickel resources in Newfoundland and Labrador to support long-term decarbonisation. As a result, Jogmec FPX nickel exploration in Canada sits at the intersection of energy security, EV growth and critical mineral policy in both countries.

Strategic drivers behind Jogmec FPX nickel exploration in Canada

The first phase of Jogmec FPX nickel exploration in Canada focuses on the Advocate area in northwest Newfoundland and Labrador. Jogmec will pay C$1.64mn over three years for an option to acquire a 48pc stake from Shoreline Exploration. However, the exploration timeline and ultimate nickel yield remain uncertain, underlining the early-stage nature of the project.

Japan’s government has placed storage batteries on its list of 11 vital materials since late 2022. Therefore Jogmec is mandated to lock in battery metal supply, including nickel, to underpin its 2050 decarbonisation targets. Canada has emerged as Japan’s preferred partner for these efforts, combining resource depth, ESG credibility and strong policy backing for critical minerals.

Meanwhile, Jogmec and FPX are already familiar collaborators in awaruite nickel. They previously explored the 28km² Klow area in British Columbia, building geological knowledge and technical confidence. This continuity reduces project risk and strengthens the case for scaling Jogmec FPX nickel exploration in Canada into a long-term supply platform.

Awaruite nickel, FPX portfolio and supply chain implications

Awaruite nickel, hosted in ultramafic rocks, offers potential processing and ESG advantages compared with some sulphide and laterite routes. If exploration succeeds, Jogmec FPX nickel exploration in Canada could deliver large-scale, low-impurity feedstock for battery precursors. However, investors will still demand clarity on recovery rates, capex intensity and permitting pathways before committing major capital.

FPX Nickel sits at the centre of this emerging supply chain. Its 59,000 t/yr Baptiste Nickel Project in British Columbia already attracted a strategic stake from Japan’s Sumitomo Metal Mining. As a result, Japan’s industrial ecosystem could gain multi-asset access to Canadian nickel via Jogmec, Sumitomo and FPX, spanning both Baptiste and Advocate.

For Canada, this partnership reinforces its positioning as a reliable supplier of low-carbon critical minerals to advanced economies. For Japan, diversified awaruite supply helps reduce exposure to high-risk jurisdictions and volatile spot markets. Over time, successful Jogmec FPX nickel exploration in Canada could anchor new midstream investments in refining and active materials aligned with EV and storage demand.

The Metalnomist Commentary

Jogmec’s move with FPX shows how state-backed agencies are now competing directly for future battery nickel. If the Advocate and Baptiste projects advance on schedule, Canada could become one of Japan’s most strategic nickel partners outside traditional sulphide hubs. The key question now is whether policy support and project economics will align fast enough to meet the next wave of EV demand.

Antam Nickel Ore Output Surges as Indonesia’s Domestic Demand Drives Growth

Antam Nickel

Antam nickel ore output surged in 2025 to its highest level in more than a decade. The state-controlled miner produced 16.1mn wet metric tonnes of nickel ore. That was up 62pc from the previous year. As a result, Antam nickel ore output now reflects the strength of Indonesian domestic nickel demand.

The company’s sales performance was even stronger. Nickel ore sales rose 75pc year on year to 14.6mn wet metric tonnes. This shows that domestic downstream buyers absorbed much of the additional supply. Therefore, Indonesia nickel ore production continues to benefit from the country’s internal processing expansion.

This matters because Antam’s ore supports more than one value chain. Its nickel ore feeds domestic class two nickel production and the company’s own ferronickel operations at Kolaka. Consequently, Antam nickel ore output remains important to both external downstream users and its internal processing strategy.

Indonesian Domestic Nickel Demand Is Reshaping Antam’s Business Mix

Indonesian domestic nickel demand is clearly driving Antam’s ore growth. The company’s production surge shows how strongly local processors continue to pull feedstock into the domestic market. This supports Indonesia’s long-term policy of deeper downstream integration. As a result, ore production is becoming more strategically valuable than before.

However, Antam’s ferronickel business moved in the opposite direction. Ferronickel output fell 20pc to 16,064t in nickel metal equivalent. Sales almost halved to 10,528t in nickel over the same period. Therefore, Antam is seeing a widening gap between ore strength and ferronickel weakness.

The company said rule changes in minimum sales pricing largely caused that decline. That means the problem was not simply demand destruction. Instead, market rules affected the economics of ferronickel sales more directly. Meanwhile, all ferronickel sales were exported, mainly to South Korea, India, and China.

Antam Battery Ecosystem Project Adds a New Strategic Layer

The Antam battery ecosystem project gives the company a stronger long-term growth story. Its joint venture with CATL began construction in the fourth quarter of 2025. That project aligns with Indonesia’s ambition to build a full downstream EV battery chain. Consequently, Antam is linking ore production more directly to higher-value battery materials.

This development matters because it expands Antam’s role beyond mining and traditional nickel products. The company is now tied more closely to Indonesia’s battery industrialization strategy. That could improve its strategic relevance even if ferronickel remains under pressure. Therefore, the Antam battery ecosystem project may become more important than short-term alloy sales.

The broader message is clear. Antam nickel ore output is rising because Indonesia’s downstream nickel model still demands more feedstock. At the same time, product mix and pricing rules are shifting value across the chain. As a result, Antam’s future may depend more on ore and battery exposure than on ferronickel alone.

The Metalnomist Commentary

Antam’s results show how Indonesia’s nickel strategy is rewarding upstream ore suppliers tied to domestic processing. The weakness in ferronickel also shows that not every downstream segment benefits equally. If the battery ecosystem expands as planned, Antam could become even more central to Indonesia’s next nickel phase.

Jutai Nickel Cathode Production Adds Flexibility to China’s Downstream Nickel Chain

Zhejiang Jutai Plant

Jutai nickel cathode production has started at Zhejiang Jutai’s integrated refinery in Zhoushan, adding new capacity to China’s fast-expanding downstream nickel processing sector. The facility has 30,000 t/yr of nickel cathode capacity and can use mixed hydroxide precipitate or nickel matte as feedstock.

Jutai nickel cathode production strengthens the company’s ability to respond to changing nickel market conditions. The same Zhoushan site also hosts a 100,000 t/yr nickel sulphate project that was commissioned in October 2025, giving the complex around 55,000 t/yr of nickel capacity on a metal equivalent basis.

The new operation matters because China is rapidly converting imported nickel intermediates into higher-value products. Jutai nickel cathode production shows how MHP and matte supply are reshaping the country’s refining system beyond battery chemicals alone.

MHP and Matte Supply Drive New Refining Capacity

Nickel intermediates are becoming the foundation of China’s new nickel processing model. Growing supplies of MHP and nickel matte allow refiners to produce nickel sulphate, nickel cathode, and other downstream products depending on margins and customer demand.

Zhejiang Jutai’s Zhoushan complex reflects this flexible approach. The company can switch between nickel sulphate and nickel cathode output, which gives it commercial optionality across battery materials and refined metal markets. This flexibility is important when nickel prices, sulphate demand, and stainless steel-linked sentiment move in different directions.

The development also shows how China continues to capture value from Indonesia-linked nickel flows. As MHP and matte availability expands, Chinese refiners can build more diversified processing routes and strengthen their role in the global nickel value chain.

China Nickel Cathode Output Continues to Expand

China’s nickel cathode production reached 415,000t in 2025, up 24pc from the previous year. Output is expected to keep rising in 2026 as new capacity starts up, existing plants expand, and firmer nickel prices improve production economics.

Higher LME nickel prices are also supporting the sector. The average LME cash price reached $15,150/t in 2025, while the year-to-date average climbed to $17,482/t by late February, driven partly by reduced Indonesian nickel ore supply.

Shaanxi Jutai, Zhejiang Jutai’s parent company, already has experience in battery material production. Its Xi’an complex began producing nickel sulphate in 2018 and also produces cobalt sulphate, manganese sulphate, vanadium pentoxide, and molybdenum products. This gives the group a broader platform across strategic metals used in batteries, alloys, and industrial materials.

The Metalnomist Commentary

Jutai’s Zhoushan project highlights China’s strength in processing flexibility. The country is not only adding nickel capacity; it is building assets that can shift between battery chemicals and refined metal as market conditions change.

Stellantis Alliance Nickel offtake agreement unravels as nickel prices slump

Stellantis

Stellantis Alliance Nickel offtake agreement is ending, underscoring how weak nickel markets are reshaping EV battery contracts. The Stellantis Alliance Nickel offtake agreement covered nickel and cobalt sulphate from Australia’s NiWest project but failed on key milestones. As a result, the Stellantis Alliance Nickel offtake agreement now joins a growing list of battery metal deals under pressure from low prices and tight funding.

NiWest delays expose battery metals project risk

Alliance Nickel and Stellantis agreed in 2023 to supply 170,000t of nickel sulphate and 12,000t of cobalt sulphate. The volumes represented around 40pc of NiWest’s forecast production, anchoring the project’s commercial foundation. However, low nickel prices and tighter financing conditions have slowed NiWest’s development and triggered missed contractual milestones.

Market conditions have turned sharply since the deal was signed. Oversupply from Indonesia and softer demand from EV and steel sectors have hit prices. The LME three-month nickel price has dropped nearly 40pc since May 2023, falling to $15,117.50/t by 7 November. In this context, long-term offtake commitments are harder to sustain for both miners and OEMs.

The termination becomes effective on 3 December, formally ending the 2023 agreement. For Alliance, the loss of a top-tier automotive anchor customer complicates project financing. For Stellantis, it removes a fixed nickel sulphate commitment tied to a project still at the development stage.

EV supply chains tighten standards on battery materials

Stellantis is also recalibrating its broader battery materials portfolio. Earlier this week, it cancelled a supply agreement with Australian battery materials supplier Novonix over product specification issues. This second cancellation highlights how automakers now demand tighter performance, quality and timing certainty from upstream partners.

Battery metal developers face a tougher landscape as OEMs pursue flexibility and risk diversification. Projects like NiWest must now compete not only on resource quality and ESG credentials, but also on cost resilience under low-price scenarios. Stronger balance sheets, staged developments and diversified customer bases will be critical to securing future offtake.

At the same time, OEMs remain under pressure to secure long-term critical mineral supply for electrification targets. Strategic partnerships will likely shift toward more advanced projects, integrated value chains, and suppliers with proven technical and financial execution.

The Metalnomist Commentary

The collapse of the Stellantis Alliance Nickel offtake agreement illustrates how quickly the battery metals balance of power can shift. When nickel prices slide and capital tightens, marginal projects and early-stage offtakes become vulnerable, even with blue-chip OEM partners. For miners, bankable projects now require true cost competitiveness and technical robustness, not just strong EV narratives.

Weiming Launches Nickel Cathode Production in Zhejiang Province

Weiming

Chinese Manufacturer Aims to Boost Nickel Output with New Facility

Weiming, a major Chinese environmental protection equipment manufacturer, has started producing nickel cathodes at its subsidiary, Weiming Shengqing, located in Wenzhou, Zhejiang province. This development marks a significant milestone as the company ramps up its nickel production capacity to meet growing global demand for the metal.

The first phase of the project is focused on a 25,000-tonne-per-year (t/yr) production capacity for nickel cathodes. Weiming is progressing well with this phase, and it expects to complete the second phase—also adding another 25,000 t/yr—by the first half of 2025. Once fully operational, the plant will contribute significantly to China's nickel supply, which is essential for battery production and other industrial applications.

Sourcing Raw Materials for Cathode Production

Weiming uses nickel matte and mixed-hydroxide-precipitate (MHP) as the primary feedstocks for its nickel cathode production. In August 2024, the company received its first shipment of nickel matte from Indonesia, amounting to 1,429 tons. This shipment marks a key milestone in Weiming’s strategy to secure reliable and sustainable sources of raw materials for its operations.

The company also operates the Jiaman high nickel matte project in Indonesia in partnership with Merit International Capital. This project, with a nameplate capacity of 40,000 tons per year of nickel metal equivalent, is poised to further support Weiming’s nickel supply chain. Located in the Weda Bay region of North Maluku Province, the project features four production lines, each capable of producing 10,000 tons of nickel metal equivalent annually.

Future Outlook for Weiming's Nickel Production

As the demand for nickel continues to rise, particularly in the electric vehicle (EV) and battery sectors, Weiming's expansion into nickel cathode production strengthens its position in the global metals market. The company’s strategic investments in Indonesia, alongside its domestic production capacity, will help ensure a steady supply of nickel to meet both local and international demand.

With the second phase of the production facility expected to complete by mid-2025, Weiming is set to play an increasingly pivotal role in global nickel production. This expansion reflects broader trends in the metals industry, where companies are focusing on securing sustainable and high-quality feedstocks to support the green energy transition.

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Merdeka Nickel Ore Production Hits Target as Downstream Expansion Gains Pace

Merdeka Battery Materials

Merdeka nickel ore production reached its 2025 target as stronger mining capacity and better weather lifted output at Sulawesi Cahaya Mineral. MBMA produced 7mn wet metric tonnes of saprolite and 14.7mn wet metric tonnes of limonite during the year. Both results rose sharply from 2024. As a result, Merdeka nickel ore production now shows that upstream growth is still supporting Indonesia’s broader nickel strategy.

The scale of the increase matters because ore supply remains the foundation of Indonesia nickel downstream expansion. Saprolite output rose 42pc year on year, while limonite output increased 45pc. The company met its saprolite target and exceeded its limonite target. Therefore, Merdeka nickel ore production is giving the group a stronger base for its processing chain.

This performance also highlights the importance of operating conditions in Indonesian mining. MBMA said optimized mining activity and lower rainfall disruption supported the result. That means the production gain did not come from capacity alone. Consequently, Merdeka nickel ore production reflects both better execution and more favorable site conditions.

Indonesia Nickel Downstream Expansion Still Shows Uneven Product Performance

Indonesia nickel downstream expansion remains the central strategic story for MBMA, but 2025 results showed a mixed product picture. The company’s downstream portfolio includes NPI, high-grade nickel matte, and mixed hydroxide precipitate. Each product line moved differently over the year. As a result, MBMA nickel output was not uniformly strong across the chain.

NPI production fell 10pc to 73,871t in nickel metal equivalent because of maintenance at the RKEF smelters. Even so, the result still landed inside the company’s guidance range. That suggests NPI operations remained resilient despite maintenance pressure. Meanwhile, high-grade nickel matte output fell much more sharply, dropping 60pc to 19,998t in nickel metal equivalent.

That matte weakness reflected a deliberate operating shift. MBMA halted HGNM production in the first quarter of 2025 and only restarted output in October after securing a new contract. Therefore, the lower HGNM result was not simply an operational failure. It also reflected a commercial reset inside the product mix.

HPAL Nickel Growth Is Becoming More Important for MBMA’s Next Phase

HPAL nickel growth is now becoming the most important part of MBMA’s medium-term outlook. The PT ESG HPAL plant, operated with Green Eco-Manufacture, produced 25,994t of nickel in MHP in 2025. That gives the company a stronger foothold in battery-linked nickel chemicals. Consequently, Indonesia nickel downstream expansion is moving deeper into higher-value processing.

The next growth driver is already under construction. The Sulawesi Nickel Cobalt HPAL project is expected to start commissioning in the second half of this year. With capacity of 90,000 t/yr of nickel in MHP, the project could materially change MBMA’s downstream profile. Therefore, HPAL nickel growth may become the main reason investors watch MBMA more closely in 2026.

The company’s new guidance supports that view. MBMA raised its 2026 ore production targets for both saprolite and limonite, while also lifting its HGNM target sharply. MHP output from PT ESG is also expected to rise. As a result, Merdeka nickel ore production is no longer just an upstream success story. It is increasingly the feed base for a much broader downstream buildout.

The Metalnomist Commentary

MBMA’s 2025 result shows that Indonesia’s nickel model still depends on strong ore delivery before downstream value can scale. The real takeaway is not just that ore targets were met. It is that HPAL and chemical capacity are becoming more central to the company’s future than traditional nickel products alone.

Eramet Weda Bay Nickel Quota Cut Raises New Supply Risks for Indonesia

PT Weda Bay Nickel

Eramet Weda Bay nickel quota cut has become a major new concern for the global nickel market. PT Weda Bay Nickel received a 2026 RKAB quota of just 12mn wet metric tonnes. That is far below its 42mn wmt allocation in 2025. As a result, Eramet Weda Bay nickel quota cut is intensifying fears over tighter Indonesian ore supply.

This matters because Weda Bay Nickel is the world’s largest nickel mine. The operation is a joint venture between Eramet and Tsingshan. It also remains the dominant ore supplier to Weda Bay Industrial Park. Therefore, a 70pc quota reduction creates risk far beyond one company.

The company had requested an unchanged 42mn wmt allocation for 2026. That request included 3mn t for its own NPI smelter in Weda Bay. The final decision came in far lower than that level. Consequently, the market now sees a much tighter supply environment than expected.

Indonesia Nickel Ore Supply Faces a Sharper Constraint

Indonesia nickel ore supply is now under stronger pressure as the government tightens RKAB approvals. Jakarta had already signalled a lower national quota of 260mn-270mn t for 2026. The Weda Bay decision now gives that policy a much more concrete impact. As a result, ore tightness is no longer a theory. It is becoming a real operating issue.

Weda Bay Nickel plans to submit another application for a higher quota. That means policy uncertainty is still not fully settled. However, the current reduction already changes market expectations. Therefore, 2026 nickel prices may stay supported while smelters wait for clearer guidance.

Imports may help at the margin, but they cannot fully solve the problem. Weda Bay is too important to replace easily. If ore flows stay constrained, downstream output will likely face pressure. Meanwhile, project timelines could also come under strain.

Weda Bay Industrial Park Could Face Production and Expansion Pressure

Weda Bay Industrial Park is especially exposed because it depends heavily on Weda Bay ore. The site hosts major MHP, NPI, and matte capacity. That includes Huafei and the newly launched Blue Sparking Energy MHP project. Therefore, Eramet Weda Bay nickel quota cut could affect both current production and future ramp-ups.

The scale of IWIP makes this even more important. The park is projected to produce around 550,000t in nickel metal equivalent in 2025. That makes it Indonesia’s largest nickel production hub, ahead of IMIP. As a result, any ore disruption at Weda Bay has system-wide importance.

The market now faces a new question. Can Indonesia keep downstream growth on track while holding ore supply tighter? That question will shape the next phase of nickel pricing, project execution, and investor confidence. Consequently, the quota decision may become one of the most important nickel policy signals of 2026.

The Metalnomist Commentary

This quota cut matters because it targets the ore source that feeds Indonesia’s most important nickel hub. The key shift is clear. Indonesia is no longer acting only as a volume maximizer. It is acting more like a supply manager, and the nickel market will have to reprice that reality.

Nickel Industries Acquires 51% Stake in Indonesian Nickel-Cobalt Project

Nickel Industries

Australian-based Nickel Industries has officially acquired a 51% stake in the Siduarsi nickel-cobalt project located in West Papua, Indonesia, as announced on Monday. This acquisition is part of a larger agreement made in September 2021 with Iriana Mutiara Mining, which grants Nickel Industries the opportunity to eventually own 100% of the project, contingent upon certain conditions being met.

Further Investment Potential in Siduarsi Project

Nickel Industries has the potential to expand its stake to 82.5% pending the approval of a feasibility study by the Indonesian Mines Department. The Siduarsi deposit covers 16,470 hectares and is estimated to hold 52 million dry metric tonnes of mineral resources, with nickel concentrations at 1.1% and cobalt at 0.1%.

Initial testing has confirmed that the deposit’s limonite and saprolite ores are suitable for high-pressure acid leaching (HPAL) and rotary kiln electric furnace (RKEF) operations. According to Nickel Industries managing director Justin Werner, the primary focus will be on shipping limonite ore directly to the Weda Bay Industrial Park, though the potential for HPAL processing offers opportunities for producing higher-value products like mixed hydroxide precipitate (MHP), nickel sulphate, and nickel cathode.

Nickel Industries already has significant interests in Indonesia, including an 80% stake in four nickel projects and a stake in two HPAL projects, producing a variety of nickel products, including NPI, matte, MHP, and nickel sulphate.