ASX-listed Nickel Industries has produced a record 32 558 t of nickel metal in the June quarter as the company continues to ramp up production from its Oracle nickel project in Indonesia.
Nickel production in the June quarter was up from the 27 399 t produced in the March quarter, with Oracle contributing 10 141 t during the quarter under review.
Nickel Industries said on Tuesday that with the start of commissioning of the Oracle power plant late in the June quarter, further increases in production volumes were expected in the September quarter, in addition to material electricity cost savings.
At full production, Oracle will have an annual nameplate capacity of 36 000 t/y of contained nickel in nickel pig iron (NPI).
“Since the June quarter of 2022 where we recorded 15 566 t of nickel, we have increased our nickel production by 110% to 32 558 t for the June quarter of 2023, bringing the company’s attributable nickel metal production to in excess of 100 000 t/y, well and truly establishing Nickel Industries as a top-10 global diversified nickel producer,” said MD Justin Werner.
“Nickel Industries has also successfully diversified into Class 1 nickel over this period through the production of nickel matte from our HNI kiln electric furnace operations and we look forward to delivering further nickel metal production increases and diversification during the September quarter, with further increases expected at ONI and an additional 6 500 t/y of mixed hydroxide precipitate from the acquisition of 10% of the HNC high pressure acid leach project, which was recently approved by shareholders at the company’s general meeting on July 5.
“The company believes that we have seen the bottom of cyclical lows in NPI and nickel pricing and we expect to see a continued decrease in operating costs, as the effect of declining ore and coal prices will start to be realised in the September quarter. At a time when many producers in the nickel industry are struggling to realise a margin, we have once again demonstrated the robustness of our operations (through our size and scale, position at the bottom end of the cost curve and product diversification) which places us in an extremely strong position to capitalise on improving market conditions and fundamentals.”
