Source: Nickel Mines
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  • Nickel Mines (NIC) acquires a further 30 per cent stake in Indonesia’s Angel Nickel Project for $290.5 million, taking its total interest to 80 per cent
  • The project is expected to start commissioning by no later than October, 2022
  • NIC says that after commissioning Angel will more than double its annual production capacity from 30,000 tonnes of nickel metal to 66,000 tonnes
  • The company has a construction cost guarantee and no capital expenditure risk
  • Shares are trading 0.53 per cent up at 93.5 cents at 10:37 am AEST

Nickel Mines (NIC) has acquired a further 30 per cent stake in Angel Capital Private Limited, taking its total interest in the entity to 80 per cent.

Angel Capital is a Singaporean holding company and the owner of the Angel Nickel Project, which is under construction in Indonesia’s Weda Bay Industrial Park.

Accordingly, NIC’s latest payment of US$210 million (A$290.5 million) also increases the company’s direct ownership in the Angel Project to 80 per cent, after it acquired an initial 30 per cent interest in February and a further 20 per cent in April.

The company now holds an 80 per cent interest across all of its rotary kiln electric furnace (RKEF) operations, being Angel Nickel, Hengjaya Nickel and Ranger Nickel.

The remaining 20 per cent slice belongs to NIC’s largest shareholder and strategic partner — Shanghai Decent Investment Co., Ltd. — a group company of stainless-steel producer, Tsingshan.

Looking ahead, NIC said it expected the Angel Project to start commissioning by no later than October, 2022.

Once commissioned, the company projected its nameplate production profile would more than double, with annual production capacity (calculated on a 100 per cent basis) set to increase from 30,000 tonnes of nickel metal to 66,000 tonnes.

Importantly, Shanghai Decent has provided the company with a contractual commitment that the total cost of the project will not exceed US$700 million (A$968.4 million).

Nickel Mines has now paid its share of this cost and has therefore reported no capital expenditure risk in relation to Angel Nickel.

NIC Managing Director Justin Werner commented on the latest acquisition.

“The 380-million-watt captive power plant is expected to deliver a 20 per cent cost saving on power, resulting in lower operating costs than our existing Hengjaya Nickel and Ranger Nickel operations, which already sit at the bottom of the NPI cost curve,” he said.

“With commissioning on track for the second half of 2022, we congratulate our partners Shanghai Decent on the progress made despite a resurgent COVID-19 Delta variant which has impacted global supply chains and logistics, and with this transaction, we have further strengthened our strong strategic relationship.”

Shares were trading 0.53 per cent up at 93.5 cents at 10:37 am AEST.

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