The Nickel Mines (ASX: NIC) share price is falling today amid an update on its Oracle Nickel Project.
Nickel Mines shares are currently trading on the ASX at $1.17, a 2.5% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 1% at the time of writing.
Let's take a look at what is happening at Nickel Mines.
Oracle nickel project
Nickel Mines advised the company's Oracle Nickel Project in Indonesia has been granted corporate tax relief. The project is under construction at the Indonesia Morowali Industrial Park in Central Sulawesi, Indonesia.
Nickel mines signed an agreement with partner Shanghai Decent Investment to acquire a 70% interest in the project in December. In February, the miner completed the acquisition of an initial 10% interest in the project.
The venture has been granted tax concessions for 10 years of production plus a further 2 years at 50% of the corporate Indonesian tax rate.
Nickel Mines managing director Justin Werner said the Oracle Nickel Project has made "tremendous progress" since December.
All 12 of our RKEF lines that are either in operation, commissioning or under construction have been granted these tax concessions in recognition of meeting the expenditure and investment conditions set by the Indonesian government.
These tax concessions along with the very low levels of sustaining capex required by our RKEF operations have resulted in 97%-99% EBITDA to free cash flow conversion over the course of 2021.
Nickel Mines hopes to complete its 70% stake in the project by the end of the year.
Last week, the Nickel Mines share price had a turbulent week. The company's shares have fallen 29% from market close on Monday 7 March to their current price.
As my Foolish colleague Tristan reported, the company addressed media speculation regarding a short position in LME nickel held by the Tisinghan group.
Nickel Mines also withdrew a share purchase plan after receiving applications totalling $57 million. The company had been aiming to raise $18 million.
Last week, the London Metal Exchange suspended trading in nickel after record price increases on commodity markets.
Nickel mines on the ASX snapshot
The Nickel Mines share price has plunged around 17% in the past year, dropping 18% year to date.
In the past month, the miner's shares have taken an 18% hit, sliding 29% in the past week alone.
For perspective, the benchmark ASX index has returned around 5% over the past year.
