SMM11, June 26: according to recent reports, Australian company Nickel Mines has signed an agreement with partner Shanghai Decent Investment to buy 70% of Indonesia's Angel Nickel project at a price of A $490 million. The project is located in (IWIP), Veda Bay Industrial Park, Indonesia. It consists of four rotary kiln furnace (RKEF) production lines and a 380MW self-contained power station, which is currently under construction in IWIP.
Justin Werner (Justin Werner), Managing Director of Nickel Mines, said: "this transaction is revolutionary for the company because it will substantially double the company's NPI production capacity and provide us with the operating footprint of the two largest nickel production centers in the world over the next decade. In addition, this partnership with Weda Bay consolidates and further expands our good relationship with Shanghai Decent, which continues to provide excellent operational performance in our existing shared projects and valuable shareholder support to Nickel's executive team. "
Under the terms of the agreement, Nickel Mines will acquire a 70 per cent stake in the project in two phases. In the first tranche, Nickel Mines will pay $210 million for the initial 30 per cent stake in Angel Angelel by the end of the first quarter of 2021. At the same time, Nickel Mines will pay $280 million in the second payment to acquire the remaining 40 per cent interest in the Angel nickel project by the fourth quarter of 2021.
