Nickel Mines, an Australian Nickel mining company, signed a memorandum of understanding with Shanghai Dingxin Investment (Group) Co on May 3 to upgrade two rotary kiln electric furnace production lines (RKEF) for high-grade Nickel, entering the electric vehicle market.
Shanghai Dingxin's parent company, Qingshan Holding Group, recently announced a one-year contract to supply 100,000 tons of high-ice nickel to Huayou Cobalt and Zhongwei New Materials starting in October 2021.
Nickel Mines has converted two RKEF production lines at the Morowali Industrial Park in Indonesia to produce high-grade Nickel (> 75%) to fulfill the Aoshan order, which the company expects to begin deliveries in the early fourth quarter.
The cost of retrofitting each production line is about $1 million.
Justin Werner, Managing Director, said: "We are pleased to have the opportunity to participate in the electric vehicle supply chain and further strengthen our relationship with Aoyama and our position in the global nickel market."
The company diversifies its production by selling high-grade nickel and has greater exposure to the nickel market price.
Nickel Mines produced 72,000 tonnes of NPI in the first quarter, down 7 per cent from the previous quarter.
Nickel sales were 10,300 tonnes, down 10 per cent month-on-month.
The output drop was due to power supply cuts caused by the earthquake in early January and the impact of the Chinese New Year holiday.
