The Nickel Industries Ltd (ASX: NIC) share price is in focus today after news the company has received approval to lift its 2025 nickel ore sales quota to 10.5 million wet metric tonnes (wmt), with immediate recommencement of sales and growth plans for 2026.
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What did Nickel Industries report?
- 2025 RKAB (nickel ore quota) increased from 9 million wmt to 10.5 million wmt
- Immediate restart of nickel ore sales from the Hengjaya Mine
- Approval of 2026 RKAB expected soon, targeting 19 million wmt per annum
- Five-year environmental permit (AMDAL) secured, enabling market-leading tailings management
- Innovative in-pit tailings storage and limonite slurry pipeline to ENC HPAL
What else do investors need to know?
The company's environmental permit allows for Indonesia's first in-pit tailings storage, with a dedicated pipeline between the ENC High-Pressure Acid Leach (HPAL) plant and the Hengjaya Mine. This approach is designed to improve traceability for end users and reduce environmental impact.
Approval of the five-year AMDAL not only supports higher production for 2025 but also underpins the company's application for a substantial increase to the nickel ore quota in 2026. Sales of stockpiled ore to the Indonesia Morowali Industrial Park (IMIP) have already recommenced, boosting near-term revenue potential.
What did Nickel Industries management say?
Justin Werner, Managing Director said:
We are pleased to announce the approval of an increase to our 2025 RKAB, allowing mine sales to recommence immediately. The AMDAL supporting the 2025 RKAB is not only essential for this year's operations but lays the foundation for a further RKAB increase in 2026.
The AMDAL approval is the first of its kind to permit the use of a pipeline to return HPAL tailings to the mine for storage, re-contouring and revegetation. This innovation will significantly contribute to our goal of positioning ENC as the lowest carbon and cost intensive HPAL globally, producing diversified class 1 and intermediary nickel products.
We thank all of the Ministry of Environment staff who worked closely with the Hengjaya Mine technical team to ensure a detailed and comprehensive AMDAL was delivered.
What's next for Nickel Industries?
Nickel Industries is awaiting final approval for the 2026 RKAB, which would increase its sales quota to 19 million wmt. The company is also focused on commissioning the Excelsior Nickel Cobalt (ENC) project, a next-generation HPAL plant expected to produce around 72,000 tonnes of nickel metal annually.
As Nickel Industries transitions towards supplying the electric vehicle battery market, the business continues to prioritise reducing its carbon footprint and costs, with new technologies and environmental initiatives leading the way.
Nickel Industries share price snapshot
Over the past 12 months, Nickel Industries shares have declined 17%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.
