Ehrman: Nickel Production Grew 9% in The Third Quarter Of 2022

Eramet recently announced its fiscal year 2022 and third quarter results. In the third quarter of 2022, SLN produced 9500 metal tons of ferric nickel and 1.46 million wet tons of nickel ore. Weda Bay Nickel has a nickel ore production of 3.485 million wet tonnes.

The Eramet Group reported a 9% increase in nickel production in Indonesia and a 23% increase in nickel sales in the third quarter of 2022. Nickel BU statistics do not include Sandouville, which has been sold.

Nickel project production

During the third quarter of 2022, the Company produced nearly 3.5 million wet tons of marketable nickel ore at Weida Bay in Indonesia, representing a 9% increase in production. As of the end of September 2022, total production was 11.6 million wet tons, an increase of 25% year-on-year. External nickel ore sales volume exceeded 2.9 million wet tons in the third quarter of 2022, an increase of 23% over the same period last year.

Meanwhile, nickel smelters supplied by the mine produced 8,900 tonnes of metal during the quarter (28,600 tonnes as at end-September 2022). The amount of nickel sold by Eramet as part of the offtake contract was 4,100 metal tonnes.

Low-grade nickel ore exports declined 34% in the third quarter of 2022, while ferro nickel production declined 9%; Sales of low-grade nickel rose 8 per cent to 106,000 wet tonnes.

Vision of Goals

In Indonesia, the target for marketable nickel ore production in 2022 was revised to more than 16 million wet tons.

Eramet received the necessary approvals to increase production and sales of high-grade ore in the summer of 2022. In addition, Eramet has been granted a license to sell 4 million wet tons of low-grade ore in 2022. Four million wet tonnes of low-grade ore will be sold in the fourth quarter of 2022. Exports of nickel ore are expected to be about 3 million wet tons and production of ferronickel is expected to be about 40,000 metal tons in 2022.

第三季度,Eramet协作with BASF, continued project studies related to hydrometallurgy projects (high pressure acid leaching or HPAL16) to produce battery-grade nickel and cobalt intermediate mixed hydroxide products using laterite ore extracted from nickel mines in Vidarbe, Indonesia. An investment decision is expected in the first half of 2023, and the plant will open and begin production in early 2026.

In addition, Eramet has prioritized exploration and business development activities for nickel and is actively exploring possibilities in Indonesia to achieve hydrometallurgical project objectives.

In France, Eramet is also continuing a pre-feasibility study for a possible lithium-ion battery recycling facility. The company will use hydrometallurgy technology developed by Eramet to recover nickel, cobalt and lithium from used electric vehicle batteries and scrap. Eramet has now completed discussions and is preparing an initial battery recycling facility in the Dunkerque port area.

Eramet sales

In the third quarter of 2022, the Eramet Nickel business segment recorded a turnover of EUR 300 million, an increase of 15%. SLN13 sales rose 11 percent to 235 million euros. Trading activity (offtake contracts) for ferro nickel produced from the Vidalbe nickel mine contributed EUR65 million (+35%), driven by increased production.