Nickel Mines Ltd. submitted a notice to Shanghai Decent Investment (Group) Co. Ltd. to acquire a further 35% interest in Hengjaya Holdings Pvt. Ltd. for US$70 million.
As a result, its interest in the two-line rotary kiln electric furnace plant currently under construction in the Indonesia Morowali Industrial Park will increase to 60%.
The purchase price is fully funded by proceeds from the company's IPO.
Nickel Mines also has a one-year call option from the date of first nickel pig iron production from the plant to increase its ownership to 100% for an additional US$120 million.
The company said Sept. 4 that foundation work and support structures for the plant are near completion, and it expects the plant will begin commissioning activities ahead of the June 2019 quarter.
A building construction license has now been secured for the two plant lines as well as supporting infrastructure.