Nickel Industries Ltd. has secured approval for its 2026 nickel ore sales plan in Indonesia, paving the way for a production ramp-up at its Hengjaya mine.
The company said the Indonesian government has approved an increased 2026 Rencana Kerja dan Anggaran Biaya (RKAB) sales licence, boosting the mine’s allowed nickel ore sales from 9.0 million to 14.3 million wet metric tonnes (wmt).
This 58 per cent increase in the sales quota is the final regulatory step for 2026. The expanded licence is strategically timed to support the upcoming commissioning of the Excelsior nickel cobalt (ENC) HPAL project.
Of the 14.3 million wmt approved, approximately 8.3 million wmt will be dedicated to meeting the limonite ore demand for the Excelsior project.
The remaining allocation will consist of saprolite ore to be sold to the company’s existing Rotary Kiln Electric Furnace (RKEF) operations within the Indonesia Morowali Industrial Park (IMIP).
Nickel Industries has also executed a binding 15-year ore supply agreement, a move that will de-risk the mine’s future earnings.
The mine will exclusively supply a minimum of 9.2 million wmt of limonite ore per annum to the ENC project at market-linked prices.
“The increased RKAB approval provides certainty of supply for both our RKEF and ENC operations,” said Nickel Industries’ Managing Director Justin Werner.
“The binding, long-term supply agreement materially de-risks Hengjaya mine’s limonite sales and provides strong earnings visibility as ENC ramps up.”
A highlight of the new arrangement is the shift in logistics. Historically, limonite ore was transported via haul trucks; however, under the new agreement, ore will be moved via a slurry pipeline.
This transition is expected to deliver a material reduction in transport costs and lower the carbon intensity of the operation.
The first load of limonite ore is scheduled for delivery to the ENC preparation plant by the end of this month.
