Page 20 - ANC22-Presentations-Weds

Nickel Costs: Story of 2022

Only 4% y-o-y increase was noted for the HPAL site costs noted the highest increase caused by higher
concentrate miners site costs Sulphur price, power costs spike and ramp up of new operations
Site costs by driver, 2020-2026 Site costs by driver, 2020-2026
16,000 16,000
+4% +15%

8,000 8,000

Ore Purchase Costs
Labour Costs
0 0
2020 2022 2024 2026 Power Costs 2020 2022 2024 2026
NPI and FeNi costs are highly sensitive to energy costs, Fuel Costs
ore price Coke Costs • The highest inflation was noted for HPAL operations. The
Site costs by driver, 2020-2026 Consumables Costs increase can be attributed to high increase in sulphur price
Maintenance Costs
16,000 (~10% YOY), fuel cost increase due to diesel price and finally new
capacity in ramp up (higher costs vs. fully ramped up operation)
+2%
• The increase of NPI and Ferronickel site costs shown on global

8,000 scale is cushioned by influx of new Indonesian capacity. The
domestic ore prices is Indonesia although higher than in 2021
are not nearly as high as the import prices for Chinese or
Japanese producers. Power costs increase is in line with the coal
0 price inflation.
2020 2022 2024 2026
Data: CRU 12