PERTH (miningweekly.com) – ASX-listed Nickel Industries has finalised the acquisition of an additional 40% interest in the Oracle nickel project, in Indonesia, taking its equity interest in the project to 70%.
The company said on Wednesday that with commissioning at the project scheduled for October, Nickel Industries has completed an early payment of $212-million to Shanghai Decent to secure the increased interest.
“With the earlier than anticipated commissioning of Oracle nickel, we are delighted to have increased our ownership interest in the project ahead of schedule, enabling the company to maximise its exposure to earlier cash flows,” said Nickel Industries MD Justin Werner.
“Oracle nickel is a material pillar in the company’s growth platform and upon the completion of its commissioning and ramp-up, consolidated production levels of between 130 000 t to 140 000 t of nickel per annum are expected, elevating the company to a top-10 global nickel producer. Furthermore, the integrated nature of the project’s power generation will deliver material long-term cost savings and assist in ensuring our operations remain in the bottom quartile of global nickel pig iron producers.”
Oracle Nickel has a nameplate capacity of 36 000 t/y of nickel and similar to the Angel nickel project is expected to operate in excess of 130% of nameplate capacity once fully ramped up.
Oracle Nickel’s commissioning schedule is expected to replicate that of Angel nickel, with each of the project’s four rotary kiln electric furnace (RKEF) lines anticipated to operate below nameplate capacity until the completion and commissioning of the project’s designated power plant in early 2023. Once the project’s RKEF lines are operating at full capacity and the Oracle nickel power plant has been commissioned, the project is expected to achieve an approximate 20% saving on its power costs, an outcome now being achieved at Angel nickel.