Australian Direct Nickel and Indonesia's Antam are looking to complete the feasibility study for their joint venture plant in Halmahera Island by first quarter 2015, a Direct Nickel spokesman said Monday.
Last month, the two companies announced plans to develop the 50:50 JV plant near Antam's Buli operation in Indonesia, to produce nickel using the DNi process created by Direct Nickel.
The construction for the 10,000-20,000 mt/year nickel plant will begin soon after the completion of the study and the plant could start up three-four years after that, the spokesman added.
Direct Nickel has developed the "DNi Process" over the past seven years as a low-cost process for extracting nickel from nickel laterite deposits. A test plant operation was completed successfully in Western Australia which showed that the DNi process could offer low-costs of around $2/lb to $3/lb to produce nickel.
"The DNi process has the potential to provide the step-change the nickel industry needs to overcome high capital and operating costs in a low commodity price environment," Direct Nickel said in a statement Monday.
"Direct Nickel is targeting the stainless steel sector as the cost and production efficiencies associated with the DNi process have the potential to reduce stainless steel pricing globally," it said.
Developing the plant with Antam will allow the Australian producer to take full advantage of Indonesian ore export restrictions, as it will not be be subject to the ban on exports if developing refining capacity within the country, Platts has reported earlier.
Indonesia implemented a ban on the export of nickel and bauxite ore from January 12, with the legislation aimed at adding value to the country's mining sector by increasing domestic production of refined material instead of importing direct shipping ore, Platts has reported.
Direct Nickel has already received strong interest from several Indonesian miners in regards to processing ore domestically.
Direct Nickel forecasts a nickel supply shortfall from 2017 as a result of the decline in production from sulphides and technical difficulties with the completion and start-up of alternative nickel laterite processing plants, the company said.
