An Australian nickel producer has completed one of the biggest IPOs on the ASX, officially entering the global nickel market.
Nickel Mines has raised A$200 million in an IPO, which values the company at around A$485 million.
The IPO is one of the largest offerings on the ASX in the last 12 months.
Nickel Mines is looking to become a globally significant, low-cost producer of Nickel Pig Iron which is a key ingredient for the production of stainless steel.
Its key asset is the Hengjaya Nickel Mine in Indonesia, which is a large tonnage, high grade saprolite deposit located in the Morowali Regency of Central Sulawesi.
Nickel Mines holds am 80% interest in PT Hengyaya Mineralinda (which subsequently holds 100% pf thee mine), with the remaining 20% owned by an Indonesian partner; the Wijoyo family.
In 2014, the Indonesian Government issued a ban on the exploration of unprocessed minerals, which forced production at Hengyaya to cease.
Last year, Nickel Mines signed a $200 million collaboration and subscription agreement with Shanghai Decent Investment, creating the Tsingshan Collaboration.
Under the agreement, and following a further offtake agreement signed late last year, Nickel Mines will supply around 50,000 wmt per month and 2 RKEF lines 1.5mt per year.