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Nickel Mines to supply limonite ore from Hengjaya to new plant in Morowali

Nickel Mines Ltd. signed a memorandum of understanding to supply limonite ore from its Hengjaya nickel-cobalt mine in Indonesia to a new high-pressure acid leach plant that will be built in the Morowali Industrial Park about 12 kilometers away.

In September, a consortium including Tsingshan Holding Group Co. Ltd. announced the planned construction of a new battery-grade nickel plant with an annual nameplate output of 50,000 tonnes of nickel and 4,000 tonnes of cobalt.

The company said Dec. 17 that its ability to monetize the lower-grade limonite material from this deal will materially improve the efficiency of the mine's operations, lower mining costs and improve profitability.

Additionally, the agreement considers the potential for the company's future equity participation in the plant.

Nickel Mines will continue to work with Tsingshan to progress into a binding definitive agreement as the plant nears completion and commissioning.