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BAse MetALs

unlocking new opportunities in nickel

his month marks the third anniversary
Tof Nickel Mines Ltd’s arrival on the
ASX following one of the largest resourc-
es-focused IPOs in recent memory.
Despite the company coming to market
with an established position inside the In-
donesia Morowali Industrial Park (IMIP)
run by the world’s largest stainless steel
producer Tsingshan Holding Group Co,
investors continued to pepper the Nickel
Mines team with the same question –
when are you going to participate in the
battery supply chain?
Until earlier this year, Nickel Mines nev-
er really had reason to seriously consider
divergence from its original business
strategy. The company’s $3 billion market
cap was built on the successful operation
of the Hengjaya nickel mine and its 80%
interests in the Hengjaya and Ranger ro-
tary kiln electric furnace (RKEF) projects
in the IMIP. Another project, Angel, is cur-
rently under construction.
However, just as the LME nickel price Nickel was on the menu at the June edition of Paydirt Unlocked. The panel, convened
was on the verge of hitting $US20,000/t by Paydirt editor Dominic Piper, featured Cameron Peacock from Nickel Mines,
in February, Tsingshan announced its in- Western Areas managing director Dan Lougher, IGo’s Kathleen Bozanic and Mincor
tentions to diversify into the emerging EV Resources managing director David Southam
battery supply chain. Although trials were
still ongoing, the Chinese powerhouse plore the opportunities its investors had selves as being a material player in that
expressed confidence it could process long been asking the company to con- [battery] space moving forward.
its nickel pig iron (NPI) into a nickel matte sider. And on the back of the announce- “Nickel Mines was already a slightly dif-
suitable for the batteries which power ment from its strategic partner, two of its ferent investment proposition but I think
many of the EVs being rolled out across RKEF lines are now being modified to al- we’re going to change again in being able
the globe. low Nickel Mines to supply into the battery to sell into the NPI/stainless steel market,
Nickel Mines now had reason to ex- market. which is still about 70% of local consump-
“For us it’s nice tion, while also having that additional
to be able to scope string to our bow of being able to sell into
both markets now,” a battery supply chain.”
Nickel Mines head Nickel Mines started life as a private
of business devel- DSO shipping business in 2009. Five
opment and inves- years later when the Indonesian Govern-
tor relations, Cam- ment implemented a ban on exports of all
eron Peacock, told minerals, the strategy changed and the
the nickel-focused company became a major player inside
Paydirt Unlocked the IMIP.
lunch event in While not well received by some at the
June. time, the decision from the Indonesian
“O b v io u s l y Government essentially gave birth to one
Tsingshan is a of the largest downstream processing in-
stainless steel pro- dustries in the country and Nickel Mines
ducer and most of transformed into something more than
what they’re do- what its name implies.
ing is NPI feed for “Nickel Mines is a bit of a legacy
the stainless steel name…the value in our business now is
business, but they as a NPI producer,” Peacock said.
recognised the “You only have to look at our recent
bifurcation into quarterlies. In the December quarter we
these different made $US72 million from our processing
markets and they assets and we made $US5 million from
now see them- our mining assets. The value capture is in
Dan Lougher

Page 84 aUgUST 2021 aUSTRaLIa’S PaYDIRT