Tsingshan collaboration – partnership built of mutual benefit and respect

Over the last decade Nickel Industries has established a strong and trusted relationship with Tsinghsan Group, the world’s largest nickel and stainless steel producer.

Nickel Industries relationship with Tsingshan commenced when it’s Hengjaya Mine began supplying nickel ore to the newly established Indonesia Morowali Industrial Park (IMIP) in 2015. Rapidly building a reputation as a reliable ore supplier, Nickel Industries and Shanghai Decent (a Tsingshan company responsible promoting and developing the group’s international operations) commenced discussions about partnering on downstream processing opportunities which culminated in the signing of a landmark Collaboration and Subscription Agreement in September 2017 to build a 2-line RKEF plant to be called the Hengjaya Nickel Project. This agreement paved the way for Shanghai Decent to become Nickel Industries largest shareholder with their investment enabling Nickel Industries to fund its initial 25% investment into Hengjaya Nickel.

Nickel Industries and Shanghai Decent have now collaborated on 4 RKEF projects (Hengjaya Nickel, Ranger Nickel, Angel Nickel and Oracle Nickel) comprising 12 RKEF lines, with Nickel Industries owning 80% interests in each of these projects, making it one of the largest NPI producers globally and one of Tsingshan’s most important collaboration partners.  Having successfully developed and co-invested across 4 RKEF projects, the companies are now working together to transition Nickel Industries into a fully diversified nickel producer, producing not only NPI, but the full suite of class -1 nickel products suitable for use in the EV supply chain.

This diversification strategy commenced in the December quarter of 2022 with the decision to convert Hengjaya Nickel’s production from NPI to nickel matte, a product that can be refined into nickel sulphate.  In August 2023 the Company took another step into the class 1 nickel market by purchasing Shanghai Decent’s 10% interest in the Huayou Nickel Cobalt Project (HNC), now considered one of the world’s leading HPAL operations producing Mixed Hydroxide Precipitate (MHP).

In October 2023 the Company took a positive final investment decision (FID) to participate alongside Shanghai Decent in the Excelsior Nickel Cobalt Project (ENC), a next-generation HPAL project capable of making MHP, nickel sulphate and nickel cathode.  The Company presently owns a 27.5% interest in ENC with this interest set to increase to 55% by October 2025 in accordance with a series of agreed acquisition payments.

In addition to owning 20% minority interest in the four RKEF projects, Shanghai Decent is the Company’s single largest shareholder  in addition to holding 2 Board seats.

The collaboration arrangements  continue to ensure that both parties interests are aligned operationally, financially and strategically.