Nickel Industries (ASX:NIC) has forked out US$189.8 million to up its interest in the Indonesia-based Excelsior Nickel Cobalt (ENC) High-Pressure Acid Leach (HPAL) Project to 13.75%.
It marks the second payment as part of the company’s staged US$1.265 billion plan to build its interest in the project up to 55% by the start of October 2025.
Following a final investment decision (FID) to participate in the project alongside Singapore-incorporated holding company Excelsior International Investments, Nickel Industries in October made its initial US$126.5 million to nab a 5.5% interest in the project.
Over 2024, the $2.87 billing market capitalisation company will need to make further payments of US$316.3 million and US$379.5 million by April and October, respectively, to increase its ENC interest to 44%, and the remaining 11% will come from two more payments of US$126.5 million each in 2025.
Meanwhile, the construction of the ENC project continues to advance, and the project has been granted a 15-year tax holiday from the Indonesian government.
Production at the ENC project is expected to begin in the final quarter of 2025.
Nickel Industries says once online, the project will be one of the lowest-carbon-emitting HPAL projects in the world, supported by the company’s recent SESNA solar project, which is the largest solar project in Indonesia.
Alongside ENC, Nickel Industries holds interests in the Hengjaya, Oracle, Ranger, and Angel nickel projects, also in Indonesia.
Write to Joshua Smith at Mining.com.au
Images: Nickel Industries
