ASIATODAY.ID, JAKARTA – Global investor confidence in Indonesia’s nickel industry continues to strengthen as Australian-listed Nickel Industries Limited announced a US$169 million investment to acquire a 17.5% stake in PT Teluk Metal Industry (TMI), a strategic high-pressure acid leach (HPAL) nickel project under development at Indonesia Morowali Industrial Park (IMIP) in Central Sulawesi.
The transaction, worth approximately IDR3.03 trillion, is expected to be completed by November 26, 2026, further reinforcing Indonesia’s role as a key supplier of battery materials for the global electric vehicle (EV) industry.
Nickel Industries is majority-owned by Shanghai Decent Investment (Group) Co., Ltd., while PT United Tractors Tbk (UNTR), through its subsidiary PT Danusa Tambang Nusantara, holds a 20.14% strategic stake in the Australian-listed company.
TMI is being developed as part of the Excelsior Nickel Cobalt (ENC) project at IMIP and will produce mixed hydroxide precipitate (MHP), a critical intermediate product used in lithium-ion battery manufacturing.
Following the acquisition, Nickel Industries will own 17.5% of TMI, alongside a 72.5% stake held by a Korea–Japan consortium comprising LS MnM, Hanwa, and an undisclosed strategic investor. The remaining 10% is owned by Singapore-based Sumber International Investment.
Nickel Industries Managing Director Justin Werner described the investment as a transformative milestone for the company.
“The acquisition of a 17.5% interest in TMI represents a transformational step for Nickel Industries and one of the last opportunities to invest in a large-scale HPAL project following Indonesia’s moratorium on new HPAL developments,” Werner said on official statement, Friday, June 26, 2026.
The agreement includes a comprehensive construction guarantee that caps Nickel Industries’ acquisition cost at US$169 million while ensuring the project achieves its designed production capacity by September 2027, providing greater certainty over costs, project delivery, and operational performance.
Currently under construction, TMI is expected to begin commissioning in mid-2027. The project carries a total development cost of approximately US$965 million and is designed to produce 38,640 tonnes of nickel annually in the form of MHP.
Nickel Industries’ attributable share of production is expected to reach approximately 6,775 tonnes of nickel per year.
Werner said TMI ranks among the world’s most capital-efficient HPAL developments and highlighted the company’s strong operational track record.
“Our HNC HPAL operation delivered an adjusted EBITDA margin of US$9,996 per tonne of nickel during the first quarter of 2026, demonstrating the attractive economics of our HPAL portfolio,” he said.
Beyond its equity investment, Nickel Industries will also strengthen its upstream integration. The company’s Sampala Project will serve as the exclusive nickel ore supplier to TMI, securing long-term feedstock while expanding its presence across Indonesia’s integrated nickel value chain.
The acquisition will be funded through the company’s existing cash reserves and operating cash flow. If additional financing is required, controlling shareholder Shanghai Decent has committed to providing debt funding on commercial terms.
The deal highlights sustained international investor confidence in Indonesia’s downstream nickel industry despite the government’s moratorium on new HPAL projects. As global demand for EV battery materials continues to rise, existing HPAL assets are increasingly viewed as strategic, high-value investments within the world’s largest nickel-producing nation. (AT Network)
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