Angel Nickel project starts NPI output in Indonesia

The Angel Nickel project at Halmahera island in Indonesia has entered its commissioning phase with the first of its four rotary kiln electric furnace (RKEF) lines having started nickel pig iron (NPI) production.

All four RKEF lines are expected to be operational by the end of April as the project ramps up towards its 36,000 t/yr nameplate production capacity, said Sydney-based Nickel Mines, which is an 80pc shareholder of the project.

The firm's attributable share of Angel's output will more than double its overall nickel metal capacity to 52,800 t/yr from 24,000 t/yr, further rising to 78,000 t/yr when its 70pc share of the Oracle Nickel project in Indonesia is added to its portfolio from the first quarter of 2023.

Nickel Mines reported attributable nickel metal production of 8,069t in October-December. This comprised 3,965t from the Hengaya project, lower by 0.7pc on the quarter, and 4,104t from the Ranger nickel project, higher by 0.1pc on the quarter. Both projects are situated in the Indonesia Morawali Industrial Park.

NPI prices averaged a record level of $18,545/t in October-December, 11pc higher on the quarter. Prices in the quarter were underpinned by Indonesian NPI output being insufficient to meet continued strong demand from stainless steel producers, forcing them to purchase material amounts of NPI from Chinese producers with a much higher production cost base.

By Angus Macmillan