Nickel Mines (NIC) shares surge on growth plans
NIC +7.98%: the nickel pig iron producer announced a new agreement with partner Shanghai Decent to boost production and reduce carbon footprint, as well as participate in the production of battery grade nickel. The Memorandum of Understanding (MoU) outlines the acquisition of 4 new rotary kiln electric furnaces (RKEF) in Indonesia, each to produce 9ktpa as well as invest in a 200MW solar power plant to help power the kilns. Nickel Mines will need to fund around $US525m with a cap raise likely to cover a portion of the costs, likely early next year with a definitive agreement due by the end of January. The MoU also agrees to explore the feasibility of developing Nickel Mines high grade nickel resources. This is the sort of announcement that we should expect more of from resources companies, as they work hard to meet the stringent ESG requirements of end customers.