How Nickel Industries’ New Approval Fuels Nickel Sales and Sustainability Ambitions

Nickel Industries Secures Increased 2025 Sales Quota

Nickel Industries Limited (ASX – NIC) has announced a significant regulatory win with the Indonesian authorities approving an increase in its 2025 nickel ore sales quota from 9 million to 10.5 million wet metric tonnes. This approval allows the company to immediately resume sales of stockpiled ore into the Morowali Industrial Park (IMIP), a key industrial hub for nickel processing.

The approval follows the granting of the Analisis Mengenai Dampak Lingkungan (AMDAL), Indonesia’s environmental impact assessment, by the Ministry of Environment. This five-year environmental clearance not only supports the current sales quota but also lays the groundwork for an anticipated 2026 quota increase to 19 million wet metric tonnes, signaling strong growth prospects.

Innovative Environmental Practices Set New Industry Standards

Central to the AMDAL approval is the endorsement of Indonesia’s first in-pit tailings storage system. This pioneering approach involves transporting tailings via a dedicated pipeline from the Excelsior Nickel Cobalt (ENC) High-Pressure Acid Leach (HPAL) plant back to the Hengjaya Mine for dry stacking and pit recontouring. This method offers substantial environmental benefits by reducing surface disturbance and enhancing traceability for end customers.

Additionally, the AMDAL permits the use of a slurry pipeline to transport limonite ore to the ENC HPAL facility. This innovation significantly lowers transportation costs and carbon emissions compared to traditional vehicle hauling, aligning with Nickel Industries’ commitment to sustainable and low-carbon operations.

Strategic Shift Towards Electric Vehicle Battery Supply Chain

Nickel Industries is actively transitioning from its traditional nickel pig iron production towards supplying the electric vehicle (EV) battery market. The company’s investment in the Huayue Nickel Cobalt (HNC) HPAL project and its 44% stake in the ENC project position it to produce mixed hydroxide precipitate (MHP), nickel sulphate, and nickel cathode, critical materials for EV batteries.

Managing Director Justin Werner highlighted the significance of the approvals, emphasizing that the AMDAL’s innovative tailings storage system will help ENC become the lowest carbon and cost-intensive HPAL operation globally. This strategic pivot not only diversifies Nickel Industries’ product portfolio but also enhances its environmental credentials in a sector increasingly focused on sustainability.

Looking Ahead

With the 2025 sales quota increase now in place and the 2026 quota approval expected imminently, Nickel Industries is poised for a substantial ramp-up in production. The company’s integration of cutting-edge environmental technologies could set new benchmarks for responsible mining in Indonesia and beyond.