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.