Nickel Industries Secures Key Approval to Significantly Boost Ore Sales at Hengjaya Mine

SYDNEY, AUSTRALIA – Nickel Industries Limited (ASX: NIC) announced today, March 19, 2025, that it has received approval from the Ministry of Mines (ESDM) for its techno economic feasibility study to increase ore sales from its 80%-owned Hengjaya Mine. This approval marks a significant step towards the company’s goal of increasing ore sales from the current 9 million wet metric tonnes per year (wmt pa) to 19 million wmt pa.

The approved Feasibility Study allows Nickel Industries to proceed with the next stage of the approval process, which involves submitting an environmental impact study (AMDAL). The company is targeting full approval for the increased Rencana Kerja dan Anggaran Biaya (RKAB), the triennial work and budget plan for operations, by the second half of 2025. This timeline is intended to coincide with the commissioning of Nickel Industries’ Excelsior Nickel Cobalt HPAL (ENC HPAL) project.

Justin Werner, Managing Director of Nickel Industries, commented on the approval, stating, “The approval for our Feasibility Study marks an important milestone towards gaining approval to increase Hengjaya Mine ore sales from 9 million to 19 million wmt pa. The Company has already prepared an AMDAL and will submit it shortly. Given Hengjaya Mine’s excellent sustainability and ESG record, we remain confident of receiving all approvals by the second half of 2025, which will coincide with our ENC HPAL project commissioning”.

The Hengjaya Mine is currently a strong economic contributor for Nickel Industries, having delivered an EBITDA of US$101 million from 9 million wmt of sales in 2024, with approximately 65% of this attributable to the second half of the year. The potential increase in ore sales to 19 million wmt pa suggests a significant future revenue opportunity for the company.

The RKAB is the triennial work and budget plan for mining operations in Indonesia, and an increase requires approval from the Ministry of Mines (ESDM). The approval of the Feasibility Study indicates that the Ministry has found the company’s plans for increased production to be economically viable. The subsequent submission of the AMDAL will focus on the environmental sustainability of the proposed increase.

Nickel Industries Limited, an Australian company listed on the ASX, is focused on nickel production in Indonesia. The Hengjaya Mine is a key asset for the company, and the approval of the Feasibility Study represents a significant step in its growth plans.