SYDNEY (Yosefardi) – ASX-listed Direct Nickel has partnered with state miner PT Aneka Tambang (Antam) Tbk (ANTM) to develop a DNi Process Plant in Indonesia and is poised to take full advantage of the Indonesia ore export bank that took effect on 12 January 2014.
As nickel concentrate will not be subject to export bans, Direct Nickel expects there will be a high level of demand to fill the gap in global markets created by the ban, particularly in China.
A Feasibility Study has commenced on a DNi Process Plant at Antam’s Buli operation in Halmahera, Indonesia. The study, which is led by a joint Antam.DNi team, is expected to be complete early 2015. The Buli Plant is likely to produce 10-20,000 tons per annum of nickel in concentrate.
Annual nickel ore export from Indonesia previously represented up to 20% of global supply. Current stockpiles are forecast to be depleted during 2014 and Direct Nickel is uniquely positioned to supply nickel concentrate into the markets impacted by the export restrictions.
Nikel price are already rising following Indonesia’s implementation of its ban on exports of unprocessed ore, with the LME cash price increasing by 10% to $14,647/t since Thursday last week and with some analysts forecasting $15,500/t in 2014.
Indonesia is the world’s largest exporter of unprocessed nickel laterite ore, and the main supplier to China’s rapidly growing nickel pig iron industry.