Nickel Industries i53 Fall 23

EXECUTIVE INSIGHT LEADING THE PROFESSIONAL CHARGE

FALL 2023

ISSUE 53

Progressing to

Global Leadership Nickel Industries Limited, an Australian public company operating in Indonesia, continues to pursue its journey as a globally significant, diversified low-cost nickel producer.

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Progressing to

Global Leadership Nickel Industries Limited, an Australian public company operating in Indonesia, continues to pursue its journey as a globally significant, diversified lowcost nickel producer. We spoke to Managing Director Justin Werner last year and came back to see how the company has progressed with its ambitious plans.

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n our last interview Justin explained that since Nickel Industries’ IPO in 2018 the company had grown rapidly, from basically zero nickel metal production to producing in excess of 130,000 tonnes (100% basis) of nickel from the beginning of 2023. This has placed the company amongst the top 10 global nickel producers.

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Since 1971 “Excellent Services With High Professional Integrity” PT Geoservices has 60 Laboratories throughout Indonesia supported by a solid base of expertise covering all aspects of the

exploration

and

development

of

Indonesia’s oil, gas, coal, mineral, and geothermal industries.

Our Services : • Coal Laboratory • Mineral/Explora�on Laboratory • Metallurgy Laboratory • Mineralogy Laboratory • Geotechnical Laboratory • Geological Oil and Gas Laboratory • Inspec�on Services / Cargo Superintending • Environmental Laboratory • Explora�on, Geophysical Services / Drilling

Jakarta Office Jl. Minangkabau Barat No. 34, Jakarta, Indonesia Phone : (021) 830 5555, 831 8989 Email : jktbranch@geoservices.co.id

Bandung Office Jl. Se�abudhi No. 81, Bandung, Jawa Barat Phone : (022) 203 1316, 203 5436 Email : bdgoff@geoservices.co.id

Mineral Laboratory Jl. Industri Selatan II Blok MM1 Jababeka 2, Cikarang, Bekasi, Jawa Barat, Phone : (021) 893 7833, 893 7834 Email : mindiv@geoservices.co.id

Geological Laboratory Jl. Mesjid 17, Petukangan Utara, Kebayoran Lama, Jakarta Selatan Phones : (021) 736 5365, 736 5366, 735 5980 Email : geolab@geoservices.co.id

Environmental Laboratory Jl. Sukajadi No. 227, Bandung, Jawa Barat Phones : (022) 203 8468, 203 8469 Email : envdiv@geoservices.co.id

Coal & Mineral Laboratory • Jl. Chairil Anwar Kel. Puuwatu, Kendari, Sulawesi Tenggara • Jl. Pemuda RT. 009, RW. 005, Kel. Bukit Durian, Tidore, Kep. Maluku Utara

www. geoservices.co.id

PT GEOSERVICES PT GEOSERVICES is a 100% privately owned local company that has a solid base of expertise covering all aspects of the exploration and development of Indonesia’s oil, gas, coal, mineral, and geothermal industries. Founded in 1971 to offer services to the mining industry, PT Geoservices evolved into a fully integrated exploration services company. Employing more than 1500 people, some of which are expert in specialized fields from several foreign countries.

by the Coal Division are for coal equipment supplies for laboratories and mechanical sampling systems from bulk materials and slurries.

To facilitate technology transfer PT Geoservices enters into Joint Venture or Technical Assistance agreements with foreign-based companies that are recognized as leaders in their respective fields. The combination of experienced personnel, modern instrumentation, extensive staff training, and strict quality control procedures has gained PT Geoservices worldwide acceptance. Dedication to maintaining these high standards in Indonesia ensures that the company’s services will enjoy international recognition for many years to come.

The Exploration Division offers services in geology, geophysics, mapping surveys, downhole measurements and borehole drilling catering for Mineral, Coal, Petroleum and Geothermal Exploration requirements. Other service provision for cement raw materials and industrial minerals also provided.

Today it is a one-stop organization with currently 60 Laboratories spread over Indonesia that can fulfill all exploration and analysis requirements for each of the industrial sectors it serves.

The Geological & Laboratory Services Division business streams covers Biostratigraphic Analysis, Geochemistry Analysis, Rock Description and Sedimentology, core and PVT analysis, Oil and Fuel analysis.

The Mineral Division laboratories located in Jakarta and Kendari provide exploration and production analysis to Companies involved in the Nickel Industry with one of its key clients being Nickel Mines group of Companies. The mineral division also services the mining industry by provision of metallurgical testwork, geotechnical testwork, advanced mineralogy, bullion superintending and provision of onsite laboratory management.

The Coal Division has coal laboratories in numerous locations around Indonesia specializing in sampling, stockpile and pre-shipment inspections, coal superintending, coal preparation studies and coal analysis. Other services offered

PT. Geoservices NiBara Division also has setup laboratories in Kendari and Halmahera with a specific goal to provide superintending and analytical services for nickel shipments and associated products such as coal, limestone and quicklime that are required for nickel smelter operation.

The Environmental Division provides services for microbiology, organic chemicals and analytical chemistry for environmental wastewater and potable water samples.

The Inspection Services Division provides cargo superintending services for petroleum and gas, metals and minerals, agricultural products, consumer products, palm oil, collateral management, and stock monitoring.

Other PT Geoservices Divisions provide Software, Equipment and Service provision for Oil and Gas. Engineering, Procurement & Construction (EPC) including fabrication and construction management. Calibration services for weighing and mass, pressure, temperature and force.

OUR PHILOSOPHY: “Excellent With High Professional Integrity “

Services

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The Group’s principal operations, located in Indonesia, are the Hengjaya Nickel, Oracle Nickel and Ranger Nickel rotary kiln electric furnace (‘RKEF’) projects located within the Indonesia Morowali Industrial Park (‘IMIP’), the Angel Nickel RKEF Project at the Indonesia Weda Bay Industrial Park (‘IWIP’) and the Hengjaya Mine, a large tonnage, high-grade nickel laterite deposit close to the IMIP. The company also holds a major interest in each of the Angel Nickel, Hengjaya Nickel and Ranger Nickel projects and the Hengjaya Mine as

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well as a significant interest in the Oracle Nickel project.

Justin informed us that Nickel Industries has progressed fast over the last year, further enhancing its position in global markets. “One of the big milestones of 2023 is the recently announced strategic partnership with a major Indonesian industrial, mining and automotive conglomerate, PT United Tractor (UT).

Nickel Industries has entered into a conditional agreement to issue 857m shares at A$1.10/sh for proceeds of A$943m.”

“With a diversified business across several

A LEADING INTEGRATED HEAVY EQUIPMENT BASES CONSTRUCTION AND MINING COMPANY

Propelling Growth through Business Line Diversification As a pivotal player in the heavy machinery-based construction and mining service industry in Indonesia, PT PP Presisi Tbk continues to hone its mining service sector, positioning it as a primary pillar of the company's growth trajectory. With an unwavering commitment to innovation, quality, and social responsibility, the company has played a seminal role in both civil infrastructure development and mining services, instrumental in propelling the advancement of the Republic of Indonesia.

For more insights into PT PP Presisi Tbk, please visit our official website at

www.pp-presisi.co.id

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PT PP Presisi Tbk “PT PP Presisi Tbk: Moving the wheels of growth through diversification of business lines in services Mining” JAKARTA, INDONESIA - As one of the key players in the heavy equipment-based construction and mining services industry in Indonesia, PT PP Presisi Tbk continues to strive to optimize the mining services sector as one of the company’s main growth pillars. With a strong commitment to innovation, quality, and social responsibility, the company has played an important role in the development of civil infrastructure as well as in mining services that help advance the Republic of Indonesia. PT PP Presisi has transformed into a leader in the mining services sector involving various aspects, including mining development (including hauling road, hauling road upgrading, mining operation to nickel ore hauling) and other mining works. With a strong and diverse portfolio of work, such as projects carried out at PT Hengjaya Mineralindo’s site (mining development), PT PP Presisi Tbk is also ready to work on mining operations with the support of the Mining Services Business License (IUJP) owned by PP Presisi, further proving its commitment to become the partner of choice in Indonesia’s mining development. Armed with a portfolio in mining services, PT PP Presisi Tbk also contributes to civil works to improve the quality of connectivity of the Indonesian people, such as the construction of toll roads, dams, docks, airport overlays, and other civil works.

With extensive expertise and experience, as well as a strong commitment to innovation, quality, and social responsibility, PT PP Presisi Tbk is ready to help shape the future of construction and mining in Indonesia. For more information about PT PP Presisi Tbk, please visit www.pp-presisi.co.id.

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sectors, UT, owned by Jardine Matheson, a Fortune 500 company, is one of Indonesia’s largest listed conglomerates that has a very long history in Southeast Asia, including operations in China, Vietnam and Indonesia.”

New HPAL project “Needless to say, we are delighted by securing what we believe to be the best blue chip Indonesian investment partner,” he affirms, adding that NIC and UT have also entered into an associated, conditional collaboration agreement, whereby UT will fund a contributing 20% interest in the Excelsior Nickel Cobalt (ENC) High Pressure Acid Leach (HPAL) project.

Pending a Final Investment Decision, the ENC project will commence construction at end of 2023.

“ENC will be the first HPAL producer in Indonesia. Typically HPALs just produce what’s called a mixed hydroxide precipitate. This project will actually produce mix hydroxide precipitate, nickel sulphate and nickel cathode so we will have the ability to produce all three main key class one nickel products for the electric vehicle battery market.”

“This project is giving us product diversification and the 7

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opportunity to target markets where we see superior margins or better supply demand fundamentals. As with all of our other projects, it comes with a CapEx guarantee of no more than $2.3 billion and a nameplate guarantee which is around 72,000 tonnes of nickel, making this the first publicly announced HPAL, not just in Indonesia, but globally with a capex, timeframe and nameplate guarantee.”

“This really transforms our production from what’s been predominantly Class 2, i.e. nickel pig iron which is only suitable for stainless steel and the stainless market in China. The diversification into Class 1 nickel products opens up a huge market globally in North America and Europe. So again, this is a major milestone for us.”

Best emerging sustainability company Another important event has been the completion of the haul road linking its 80% owned Hengjaya Mine to the Indonesian Morowali Industrial Park (IMIP) in central Sulawesi. The completion of the haul road represents a landmark development in the history of the company’s mining operations and will allow the mine 8

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The diversification into Class 1 nickel products opens up a huge market globally in North America and Europe.

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to rapidly increase total ore sales from current levels of approximately 3.5 million tonnes per year to a targeted 10 million tonnes per year which is expected to be achieved by the end of 2023.

In addition to business growth, Nickel Industries has become a showpiece for sustainable and responsible mining in Indonesia. In 2022, the Hengjaya Mine was awarded a Green PROPER rating by the Ministry of Environment and Forestry, becoming the sole mining entity from Central Sulawesi Province to achieve this rank and one of the only two nickel companies nationally to earn this accolade in 2022.

The company is also the only nickel company to receive 7 trophies at the Environmental and Social innovation awards; earning a silver award at the Asia Sustainability Reporting Rating. “We are very proud of these awards and are now striving to achieve the gold rating. Our sustainability efforts have been reflected in the interest of numerous EV and battery makers that have come to Indonesia looking for environmentally responsible companies.”

In this context, Justin explains that more than 50% of global nickel production last year took place in Indonesia.

By the end of this year, the figure is forecast to rise to around 75%. Nickel Industries operations thus have a significant impact on the local economy. “In the last months

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we have commissioned more rotary kiln electric furnaces at the Oracle Nickel and Ranger Nickel facility, adding another 3,000 to our workforce.

So we continue to grow, and continue to expand and increase our footprint in the local community.”

Staying at the forefront In concluding, Justin emphasises that over a very short period of time, Nickel Industries has grown into a global top 10 nickel producer, and is now moving into the top five. “We will be the only truly diversified company in the sector, and our ESG record and rating continues to improve.”

The recent developments have opened the door for NIC to materially expand its battery nickel strategy and lay the foundation for it to become the only producer of a diversified range of nickel products, including low carbon intensity Mixed Hydroxide Product.

“The diversification of the company has been the biggest achievement of the last 12 months. From historical production of Class 2 nickel mainly for the Chinese market, we have moved to becoming a producer of Class 1 nickel, meaning higher margins, lower carbon intensity, and a more diversified customer base. We have opened the company to attract North American and European Tier 1 battery and EV partners.

And that’s really exciting.”

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We will be the only truly diversified company in the sector, and our ESG record and rating continues to improve.

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www.nickelindustries.com

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