Australia's Nickel Industries Acquires 17.5% Stake in TMI Project for $169 Million

en.Wedoany.com Reported - Australian listed company Nickel Industries has agreed to invest $169 million to acquire a 17.5% stake in the PT Teluk Metal Industry (TMI) High-Pressure Acid Leach (HPAL) project, expanding its presence in the electric vehicle battery supply chain. Located in the Indonesia Morowali Industrial Park, the project is being developed as an expansion of Nickel Industries' Excelsior nickel/cobalt project, producing Mixed Hydroxide Precipitate (MHP), a key raw material for electric vehicle batteries.

This investment aligns Nickel Industries with a consortium comprising South Korea's LS MnM, Hanwa, and an undisclosed strategic investor, which collectively holds a 72.5% stake in the project; Singapore-based investment firm Sumber International Investment holds the remaining 10% interest. Nickel Industries' investment is backed by a full construction guarantee, capping the acquisition cost at $169 million and the total project construction cost at $965 million, while ensuring TMI reaches its nameplate capacity by September 2027.

Construction of TMI has commenced, with commissioning expected by mid-2027. Once operational, TMI is projected to produce approximately 38,640 tonnes of nickel annually (in MHP form), corresponding to about 6,775 tonnes per year for Nickel Industries.

Nickel Industries Managing Director Justin Werner stated that following the Indonesian government's recent suspension of new HPAL development projects, this investment represents one of the last opportunities to gain significant exposure to the country's rapidly expanding HPAL sector. He noted that TMI is one of the most capital-efficient HPAL development projects globally, and the 17.5% stake, contributing approximately 6,775 tonnes of nickel annually (in MHP form), will significantly drive the company's transition into the electric vehicle battery supply chain. Additionally, the company's Sampala project has been designated as TMI's exclusive ore supplier, positioning Nickel Industries as both a downstream processing investor and an upstream supplier.

In context, Nickel Industries' other HPAL project in the Indonesia Morowali Industrial Park, Huayue Nickel Cobalt, generated an adjusted profit of $9,996 per tonne of nickel for the company in the first quarter.

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