Nickel Mines (ASX:NIC) has executed an agreement with its partner Shanghai Decent Investment to acquire a 70 per cent equity interest in the Oracle nickel project in central Sulawesi, Indonesia.
The nickel pig iron producer will purchase the 70 per cent stake for US$371 million ($530.5 million), together with the obligation to provide Oracle Nickel US$154 million of construction funding via shareholder loans.
The Nickel project comprises four rotary kiln electric furnace (RKEF) lines with an annual nameplate production capacity of 36,000 tonnes of equivalent contained nickel in nickel pig iron, and ancillary facilities required for the operation of each of the RKEF lines.
Oracle Nickel will also separately undertake the construction of a 380MW captive power plant that will support the company’s RKEF lines and the IMIP’s overall grid power requirements.
Under the agreement, Shanghai Decent will take a lead role in the design and construction of Oracle Nickel with commissioning of the four Oracle RKEF lines to commence no later than 19 February 19, 2023 and the power plant to commence commissioning no later than July 19, 2023.
Shares in Nickel Mines (ASX:NIC) are trading 1.1 per cent higher at $1.35.