Nickel 28, the 8.56% JV partner of the Ramu operation in Papua New Guinea, released its Q3 2022 nickel and cobalt production statistic of 8.9kt Ni and 0.8kt Co-in-MHP.

Whilst disclosing its production results, Nickel 28 also stated that output from the high-pressure acid leach (HPAL) plant remains on target to achieve guidance for the full year. This comes despite the plant undergoing a deliberate curtailment of operations due to an earthquake in the region in September.

Ramu produces mixed hydroxide precipitate (MHP), which is the product of hydrometallurgical processing of laterite ores and has become the favoured intermediate in the Li-ion battery supply chain. Despite HPAL’s chequered history of Capex overruns and delayed ramp-ups, Ramu continues to be a blueprint for the success of this processing technology. As such, the latest HPAL plants being developed in Indonesia are aiming to achieve similar levels of performance.

Present and future demand for nickel and cobalt intermediates from the Chinese battery sector has resulted in the rapid expansion of HPAL capacity in Indonesia. The country hosts the world’s largest nickel reserves and the government’s tough nickel ore export policy has been highly successful in attracting foreign investment in downstream processing capacity.

Project Blue expects large volumes of Indonesian MHP to reach the market as recently commissioned HPAL plants continue to ramp up. PT HPL and PT Huayue Ni Co were brought into operation in 2021 and a third plant, PT QMB New Energy Materials, is expected to commence production by the end of the year. As additional MHP is made available to nickel sulphate and cathode active materials producers, we expect the proportion of nickel sulphate produced via Class I nickel dissolution to decline.