Nickel Mines has signed a memorandum of understanding (MoU) with its collaboration partner Shanghai Decent Investment for two of its four 80% owned rotary kiln electric furnace (RKEF) lines to undergo modifications to produce a nickel matte product suitable for sale into the electric vehicle battery market.
China-based Tsingshan, Shanghai Decent’s parent company and the world’s largest stainless steel producer, recently announced signing a one-year contract to supply 100,000 tonnes of nickel matte to Huayou Cobalt and CNGR Advanced Material, commencing from October 2021.
Nickel Mines has been offered the opportunity to convert two of its RKEF lines (either the Hengjaya Nickel or Ranger Nickel project) within the Indonesia Morowali Industrial Park. The lines will undergo minor modifications required to produce high grade nickel matte (>75%) that will then be further processed to fulfil the Tsingshan contracts. The required modification cost for each RKEF line is expected to be approximately US$1 million per line.
“We are delighted that Nickel Mines has been given this opportunity to participate in this exciting transition into the EV battery supply chain, a development that further reflects and enhances our relationship with Tsingshan and our standing in the global nickel market,” said Managing Director Justin Werner. “Our future ability to sell nickel matte into the EV battery supply chain provides a diversification of not only Nickel Mines’ production base but offers a broader exposure to the pricing dynamics of individual nickel markets that are expected to emerge over the coming years.”
“We believe the ability to become a meaningful supplier of nickel across multiple end-user markets will make Nickel Mines a truly unique investment proposition amongst other global producers and lay the platform for a broader array of future growth opportunities,” Werner concluded.
Source: Nickel Mines Ltd.