Sydney company in US$120m initial push into Indonesia's nickel pig iron market

PERTH - A Sydney company which has invested around US$120 million in two new nickel pig iron production lines in Indonesia, and is Australia's newest listed nickel company, says it expects the new plant to start commissioning by end of June next year.

Nickel Mines has acquired a 60% stake in a nickel furnace project being developed within Indonesia's Morowali Industrial Park in central Sulawesi. Its partner in the venture is Shanghai Decent, a Tsingshan group company. Tsingshan is currently the world's largest stainless steel producer.

The Australian company also has an 80% interest in the operating Hengjaya open-pit nickel mine in central Sulawesi.

Addressing the Paydirt 2018 Australian Nickel Conference in Perth today, Nickel Mines Ltd Managing Director, Justin Werner, said the plant's commissioning would come at a time when Indonesia was rapidly emerging as the epicentre of the world's nickel sector growth.

Global nickel supply growth was also being dominated by nickel pig iron output, he said. https://www.nickelmines.com.au/ (ATI).