Overview

Develop an integrated nickel mining and processing project in Indonesia with a target of 80,000 MT/year of nickel sulphate for EV batteries.

The Race Nickel Project is a large-scale nickel venture in Konawee Regency, Southeast Sulawesi, aiming to supply the burgeoning electric vehicle (EV) battery sector. The project centers on a high-grade nickel laterite deposit with JORC-classified resources containing approximately 287,884 tonnes of nickel metal and 8,616 tonnes of cobalt. The plan is to build and operate a state-of-the-art High Pressure Acid Leach (HPAL) plant to process the laterite ore into battery-grade Nickel Sulphate (targeting 80,000 metric tons per year of NiSO₄ output), alongside intermediate products like Mixed Hydroxide Precipitate (MHP), cobalt carbonate, and magnesium sulphate. The ore quality is notably high, with nickel grades ranging from 1.0% to 2.0% on average (peaking up to 6% Ni in certain zones), evidenced by historic direct shipping ore (DSO) from the site averaging around 2% Ni – among the highest in Indonesia.

Infrastructure development is integral to the project: plans include constructing the HPAL processing plant, a dedicated power plant to supply the operation, haul roads connecting the mine to processing facilities, and a port at Muara Sampara for exporting products. A comprehensive feasibility study and technical review by SNC-Lavalin has been completed, confirming the project’s design and viability. The proposed operational timeline spans 24 years of production for the HPAL plant (as per the financial model’s projection period), underpinned by the substantial resource base. All necessary permits and approvals are in hand – the Indonesian subsidiary holds the full mining license for the nickel deposit, along with environmental permits and governmental feasibility approvals, ensuring that the project is construction-ready pending financing.

From an investment perspective, the project’s 2023 valuation is approximately $2.5 billion, and it calls for significant capital expenditure (about $800 million CAPEX is projected for the HPAL plant construction and associated infrastructure). The project sponsors are seeking strategic investors or partners to co-develop the project; while exact equity terms are not publicly disclosed, detailed information and terms would be made available upon signing a Project Investment Agreement (NDA-equivalent). The development strategy also includes potential acquisition of adjacent small-scale nickel mines (each ~100 ha) to further increase resource intake for the processing plant. With its high-grade resource, advanced planning, and strategic location in one of the world’s top nickel-producing regions, the Race Nickel Project is positioned to become a key supplier of nickel sulphate to the EV battery supply chain, meeting the surging demand for battery metals.