News: NIC Australia's Nickel Mines raises stake in Indonesian project to 80%

Oct 1 (Reuters) - Australia's Nickel Mines (NIC) said on Friday it acquired an additional stake in the Angel Nickel project in Indonesia, increasing the miner's total interest in the project to 80%.

The miner bought an additional 30% stake for $210 million from a unit of China's Tsingshan Group, the world's largest stainless steel producer, which now holds the remaining interest in the project.

Angel Nickel, located in Indonesia's North Maluku province, consists of four next-generation RKEF lines - a process to produce ferro-nickel alloy - and a 380MW power station currently under construction within the Indonesia Weda Bay Industrial Park (IWIP).

The Indonesian government has made the IWIP project, among others, a "national priority" to boost processing of nickel at home after it stopped exporting unprocessed ore.

The deal gives Nickel Mines a majority control over the four rotary kiln-electric furnace (RKEF) lines in the project- its commissioning expected in October 2022- that will likely double the miner's maximum annual production to 66,000 tonnes.

Nickel Mines has shelled out north of $500 million for its 80% stake in the project, and expects no further capital expenditure on it.