Nickel Industries ups stake in Indonesia project

The news: Miner Nickel Industries has lifted its stake in Indonesia’s Excelsior Nickel Cobalt (ENC) project as it looks to diversify production and reduce carbon emissions.

The numbers: The Sydney-based mining business said it had acquired an additional 8.25% interest in ENC for USD189.8 million ($278 million) to lift its stake in the project to 13.75%. Earlier this month, the company received shareholder approval to acquire up to 75% of ENC. It has outlined a plan to spend USD1.26 billion for a 55% stake in the project by October 2025.

The context: Nickel Industries approved a final investment decision for the ENC high pressure acid leach project earlier this year. ENC is targeting production of 72 kilotons per annum across the three major Class 1 nickel products, all of which are suitable for use in the electric vehicle battery market. The project is a key plank of the company’s strategy to grow its production in Indonesia and increase its exposure to low carbon intensity Class 1 nickel.