Australian mining company Nickel Industries has acquired a 51% stake in the Siduarsi nickel-cobalt project located in West Papua, Indonesia. The acquisition, finalized on Monday, stems from a 2021 agreement with Iriana Mutiara Mining, which could eventually see Nickel Industries own 100% of the project, pending the fulfillment of specific conditions.
Expanding Potential in the Siduarsi Project
Nickel Industries has the opportunity to further increase its stake to 82.5%, contingent on the approval of a feasibility study by the Indonesian Mines Department. The Siduarsi deposit spans 16,470 hectares, with estimates indicating 52 million dry metric tonnes of mineral resources, containing 1.1% nickel and 0.1% cobalt.
Initial testing revealed that the deposit's limonite and saprolite ores are highly suitable for high-pressure acid leaching (HPAL) and rotary kiln electric furnace (RKEF) processing methods. According to managing director Justin Werner, Nickel Industries plans to initially focus on shipping limonite ore directly to the Weda Bay Industrial Park. However, Werner noted that the HPAL process could open the door to producing more valuable products, including mixed hydroxide precipitate (MHP), nickel sulphate, and nickel cathode.
Nickel Industries already holds significant assets in Indonesia, including an 80% stake in four nickel projects producing NPI and matte via the RKEF process. Additionally, the company has interests in two HPAL projects producing MHP, nickel sulphate, and nickel cathode.
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