Executive Viability Abstract
This feasibility study evaluates the establishment of a large-scale nickel processing hub in Indonesia, focusing on High-Pressure Acid Leaching (HPAL) and Rotary Kiln-Electric Furnace (RKEF) technologies. The project aims to capitalize on Indonesia's vast nickel reserves to serve the burgeoning global Electric Vehicle (EV) battery supply chain, transitioning from raw ore exports to high-value battery-grade chemicals.
Return on Investment
22.5%
Payback Span
5.4 years
Net Present Value
$1.45 Billion USD
IRR Index
19.2%
## Market Analysis
Indonesia holds approximately 21 million metric tons of nickel reserves, the largest globally. The shift toward Lithium-ion batteries (specifically NCM and NCA chemistries) has created a supply deficit for Class 1 nickel. Current projections suggest a 15% CAGR in nickel demand for the battery sector through 2030.
## Capex Summary
Total estimated Capex is $2.5 Billion USD. This includes:
- HPAL Plant Construction: $1.2B
- Infrastructure (Ports, Power Plant, Logistics): $600M
- RKEF Smelter Integration: $400M
- Environmental & Waste Management (Tailings): $300M
## Revenue Model
Revenue is generated through the sale of:
1. Mixed Hydroxide Precipitate (MHP): Primary feedstock for battery sulfates.
2. Nickel Sulfate: Refined product for cathode manufacturers.
3. Ferronickel/Nickel Matte: For the stainless steel and specialized alloy markets.
## Financial Projections
With a projected processing capacity of 60,000 tons of nickel per annum, annual revenue is estimated at $1.1B - $1.4B depending on LME price volatility.