Page 96 - pd309-Oct22-mag-web-Neat

nIcKeL PReVIeW

Nickel Industries finds

value in Indonesia our move into HPAL and Class 1 nickel in

the near future.”
Werner said the addition of other prod-
t’s from a different vantage point but tegrated nickel producer with ore from its ucts to the NPI range was in keeping with
IJustin Werner’s view of the future of the Hengjaya mine being processed through global shifts in nickel demand.
nickel industry is very similar to his ASX two rotary kiln-electric furnace (RKEF) “We are seeing the likes of Ford make
peers. lines in the Indonesia Morowali Industrial equity-level investments in HPAL [with
“EV penetration is up 100% year-on- Park (IMIP) on Sulawesi to produce NPI, China’s Zhejiang Huayou Cobalt Co Ltd
year but there are no new nickel discov- the product now favoured by Chinese and Brazil’s Vale S.A.] and people are re-
eries being made in the world,” the Nickel stainless steel producers. alising that nickel supply is only going to
Industries chief executive told Paydirt. Nickel Industries owns 80% of the two come from Indonesia.”
“OEMs are going upstream. Look at the RKEF lines with the remainder held by The distinctive structure not only deliv-
deals getting done – Tesla, Ford, VW, Tsingshan, the world’s largest nickel and ers the company a unique insight into the
BASF, LG – that is where we are headed.” stainless steel producer. The JV partners global nickel sector but is also proving
Werner may be expressing similar be- have extended the agreement to a further highly profitable.
liefs as Australian domestic nickel produc- three RKEF product lines – Ranger, An- Nickel Industries’ June half-year results
ers but he does so based on very different gel and the latest, Oracle – and they are saw it post record financial performance
evidence. While the standard ASX-listed now pursuing development of other nickel with record sales revenue ($US515 mil-
nickel producer is focused on mining high- products. One kiln has already been con- lion), NPAT ($118.4 million) and EBITDA
grade nickel sulphides in Western Austral- verted to produce nickel matte, and the ($US158.6 million).
ia, Nickel Industries has carved its niche in two groups have signed a MoU over a “You couldn’t get any better, especially
the sector via nickel pig iron (NPI) produc- high-pressure acid leach (HPAL) project. given the NPI price has been depressed,”
tion in Indonesia. “We are already the only company to Werner said of the financials. “We had re-
The company listed in August 2018, not produce both NPI and nickel matte and cord EBITDA and were able to increase
as a traditional nickel miner – although it supplying limonite ore to a HPAL circuit margins from $US5,000/t to more than
does control a large-scale nickel laterite will be our next phase of growth,” Werner $US6,000/t.”
mine in Indonesia – but rather as an in- said. “That’s what we are working towards, Where other metals producers have

ASX: CZN

Page 96 OCTOBeR 2022 aUSTRaLIa’S PaYDIRT