Nickel Industries, a company from Australia, will seek permission from shareholders to sell new shares worth A$ 943 million, equivalent to US$ 620 million. As quoted by Reuters, he said that he would use the funds to pursue growth opportunities including the potential expansion of the Excelsior Nickel Cobalt (ENC) project in Indonesia.
In June 2023, the nickel producer signed an agreement to sell around 20% shares, equivalent to 857 million shares, to PT Danusa Tambang Nusantara, a subsidiary of PT United Tractors Tbk (UNTR) in Indonesia, at a price of A$ 1.10 per share. So that the total sales of Nickel Industries shares amounted to A$ 943 million.
The placement of these shares is expected to increase Nickel Industries Limited’s (NIC) production through the ENC project in Indonesia. Nickel Industries will hold an extraordinary general meeting of shareholders on September 8.
Nickel Industries has an 80% stake in PT Hengjaya Mineralindo (a nickel mining company) which is one of the largest suppliers of high-grade limonite and saprolite ores to IMIP. The company also operates 12 lines of rotary kiln electric furnaces (RKEF). Nickel Industries has integrated nickel mining and processing with main assets located within or close to the Indonesia Morowali Industrial Park (IMIP), Sulawesi, and Indonesia Weda Bay Industrial Park (IWIP), Halmahera.
Nickel Industries is currently expanding its battery nickel strategy by converting existing RKEF lines to produce class 1 nickel matte. The company is also in the process of entering into an agreement to build a High-Pressure Acid Leach (HPAL) processing facility. This expansion is to supply the market demand for electric vehicle batteries whose needs continue to increase.
Image source >>> REUTERS/EVGENIA NOVOZHENINA