Nickel Mines to buy 70% stake in Indonesia project

Australia’s Nickel Mines Ltd NIC.AX said that it would acquire a 70% stake in the Oracle Nickel project in Indonesia in a USD 525M deal, as it sets its eyes on becoming a global top-10 producer of the commodity.

Under the deal, Nickel Mines will pay investment firm Shanghai Decent Investment (Group) Co Ltd USD 371M and will be obligated to pump a further USD 154M towards the construction of the project.

Shanghai Decent, a unit of China’s Tsingshan Holding Group will overlook the design and construction of Oracle Nickel, with commissioning of four rotary kiln electric furnace lines to commence no later than February 2023.

Actual construction costs for the project, together with a 380-megawatt power plant, will not exceed USD 750M, the miner said in a statement.

Nickel is in high demand for its use in electric vehicle batteries as the world moves towards cleaner transportation and lower emission technology. Indonesia is the world’s top nickel miner.

In October, the Australian miner raised its stake in the Angel Nickel project in Indonesia after buying an additional 30% from a unit of Tsingshan Group.

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