Nickel Industries has agreed to invest US$169 million for a 17.5% stake in PT Teluk Metal Industry’s high-pressure acid leach (HPAL) project, an expansion to the company’s existing ENC operation in Indonesia’s Morowali Industrial Park. The investment represents a significant step forward in the company’s nickel refining capacity, with the acquisition payment due on 26 November 2026.
The timing of this investment carries particular strategic weight. Following the Indonesian Government’s announcement of a moratorium on new HPAL projects, TMI represents one of the last opportunities for Nickel Industries to expand its HPAL operations at scale. The project will produce mixed hydroxide precipitate for the EV battery supply chain, positioning the company to capitalize on growing demand for battery-grade nickel. The investment sits alongside a 72.5% stake held by a Korean-Japanese consortium comprising LS MnM, Hanwa, and an undisclosed strategic investor, with the remaining 10% held by Singapore-based Sumber International Investment.
The company has secured a comprehensive construction guarantee that caps the acquisition cost at US$169 million while ensuring delivery of nameplate production capacity by September 2027. This structure provides cost, timeline, and production certainty. The economics underpinning TMI are already proven within Nickel Industries’ existing portfolio. The company’s HNC HPAL facility delivered an Adjusted EBITDA margin of US$9,996 per tonne of nickel in the first quarter of 2026 and outperformed nameplate capacity by 40 percent, demonstrating the cash-generation potential of such assets.
TMI’s annual nameplate production capacity of 38,640 nickel tonnes will translate to approximately 6,775 nickel tonnes per annum attributable to Nickel Industries. Strategically, the company’s Sampala Project has been identified as the exclusive ore supplier to TMI, creating a vertically integrated configuration that mirrors the setup already established between the Hengjaya Mine and ENC. This integration secures TMI’s ore supply for decades, aligning Nickel Industries as both equity investor and upstream supplier.
Nickel Industries expects to fund the US$169 million investment from existing cash reserves and cash flows from current operations. Should additional funding be required, Shanghai Decent, the company’s largest shareholder, has agreed to provide debt financing on commercial terms. Investors should monitor the company’s funding confirmation in coming months and watch for construction progress updates as the project moves toward commissioning in mid-2027. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About Nickel Industries Limited (ASX: NIC)
Nickel Industries Limited is an ASX-listed mining company that owns and operates a portfolio of nickel mining and downstream processing assets located primarily in Indonesia. The company produces nickel through high pressure acid leach (HPAL) technology and rotary kiln electric furnace (RKEF) projects, supplying nickel for stainless steel production and the electric vehicle supply chain.
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