Nickel Industries secures US$671M processing agreement

• Nickel Industries has signed a binding framework agreement with Indonesian partners for a share-for-share strategic cooperation.
• The company will acquire a 36% stake in a processing project valued at US$671 million without any cash consideration.
• The transaction expands the company's downstream presence and secures long-term nickel mining and high-pressure acid leach processing capabilities.

Nickel Industries (ASX:NIC) signed a binding agreement to acquire a 36% stake in a US$671 million processing project.

The share-for-share transaction allows the business to expand its operations within the Indonesia Morowali Industrial Park without contributing cash.

In exchange for the interest, the company will monetise an 18% stake in the Sampala Project.

The company stated that the project has a designed annual nameplate production capacity of approximately 28,357 nickel tonnes.

Following the announcement, the Nickel Industries share price was down at $0.92.

The Australian miner focuses on downstream nickel processing assets supplying the electric vehicle battery market.

The transaction builds on previous partnerships with Chinese and Indonesian operators to expand global output.