Mining Intelligence and News
Indonesia

Hengjaya Mine

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Overview

Mine TypeOpen Pit
StatusActive
Commodities
  • Nickel
  • Cobalt
  • Saprolite
  • Iron Ore
  • Limonite
Mining Method
  • Truck & Shovel / Loader
Production Start... Lock
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SnapshotThe Hengjaya Mine, a large tonnage, high grade nickel laterite deposit in close proximity to the Indonesia Morowali Industrial Park (IMIP) and has produced direct shipping nickel laterite ore.

In August 2023, the haul road and double-lane bridge linking the Hengjaya Mine to the IMIP were completed, enabling the Hengjaya Mine to rapidly expand its trucked ore and total ore sales. Sales of saprolite nickel ore are internal, whilst limonite ore sales are to a party external to the Nickel Industries Limited.

In December 2023, Nickel Industries added Electric Vehicles (EV) to haulage fleet at Hengjaya Mine, which marked a significant step towards driving operational efficiencies and materially reducing emissions profile.

Owners

SourceSource
CompanyInterestOwnership
Nickel Industries Ltd. 80 % Indirect
PT. Hengjaya Mineralindo (operator) 100 % Direct
The Nickel Industries holds an 80% interest in PT Hengjaya Mineralindo, the owner of 100% of the Hengjaya Mine, with the remaining 20% interest owned by the Company’s Indonesian partner.

Contractors

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Deposit type

  • Laterite

Summary:

The dunite is black, welded and massive with an aphanitic texture. Constituent minerals are olivine, pyroxene, plagioclase, some serpentine and magnetite; the rock is fine to medium grained. Olivine is a principal mineral amounting to 90 % of the rock volume. Deviations and bending of twinning in the pyroxene indicate deformation of rock. In some places the rock is intensively serpentinised, as indicated by remnants of structures such as net and veinlets of olivine and pyroxene, serpentine and talc as replacement minerals.

The nickel deposits within the HM concession comprise a lateritic sequence and composed of highly oxidized materials derived by intense weathering of ultramafic rocks. Limonite ore (LIM) is clayey, red ferrous oxide facies material that overlies and grades into the saprolite facies (SAP). Below the saprolite, the interface is often rocky, with zones of saprolite mixed with boulders and fragments of bedrock (previously CST or rocky saprolite) and occasional boulders higher in the saprolite sequence (previously CST). The interface between the saprolite and bedrock is coloured towards yellow-grey before transitioning to solid bedrock (BRK), which is often highly oxidised and fractured with garnierite occurring along fractures in the bedrock interface with the rocky saprolite and saprolite.

Geochemically and mineralogically, the sequence is divided into 3 main units of interest based on its composition of mineral and mineralization:
- Limonite (LIM) with typically hosting minerals such as goethite, hematite with high Fe content (>25%), low MgO (<10%), Ni content occasionally high (>0.8%);
- Saprolite (SAP) with goethite, olivine, antigorite, serpentinite, garnierite, silica commonly with lower Fe content (<25%) and higher MgO (>10%), higher Ni content (>1.5%) content; and,
- Bed Rock (BRK), which is unaltered ultramafic rocks typically with lower Ni (<0.5%) and higher MgO content.

The category of “Fresh Rock” noted in the geology map is unclear but may represent exposures of non-Ultramafic Complex rocks belonging to the Tomata Formation. The main area of “Fresh Rock” is exposed outside of the nickel laterite area, west of the Bete-Bete deposit area and in the far west of the concession.

Resource dimensions: approximately 8000m in length, 4000m in width, laterization thickness for up to 40m to bedrock in some places. Limonite thickness varies from 4-9m and saprolite thickness is consistently 8-10m. Laterization of ophiolite formations occurs between an elevation range of 300 – 600 meters above mean sea level.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

Milling equipment has not been reported.

Processing

Summary:

Recoveries & Grades:

CommodityParameter20222021201920182017
Saprolite Head Grade, % 1.711.76
Limonite Head Grade, % 1.18
Nickel Head Grade, % 1.962.062.06

Production

Sales of saprolite nickel ore are internal, whilst limonite ore sales are to a party external to the Nickel Industries Limited. Revenue number for sales of limonite ore only.

In 2019, Nickel Mines Ltd. changed the end of its financial year from June 30 to December 31.
CommodityUnits2023202220212020201920182017
Saprolite wmt  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe
Limonite wmt  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe
Nickel wmt 454,615391,362305,898
All production numbers are expressed as ore.

Operational metrics

Metrics2023202220212020201920182017
Stripping / waste ratio  ....  Subscribe  ....  Subscribe1.9 bcm/t1.3 bcm/t0.83 bcm/t
Ore tonnes mined  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe454,615 wmt391,362 wmt305,898 wmt
Waste  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe852,962 bcm

Production Costs

CommodityUnits202120202019
Cash costs Nickel USD  ....  Subscribe  ....  Subscribe 27 / t  
All-in costs Nickel USD 30.9 / t  

Financials

Units2023202220212020201920182017
Revenue M USD  ....  Subscribe  ....  Subscribe  ....  Subscribe 12.2   13.6   8.6  
Pre-tax Income M USD  ....  Subscribe  ....  Subscribe  ....  Subscribe  ....  Subscribe 0.3   -2.6   -0.5  
EBITDA M USD  ....  Subscribe  ....  Subscribe  ....  Subscribe

Heavy Mobile Equipment

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Personnel

Mine Management

Job TitleNamePhoneEmailProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Sep 24, 2024
....................... Subscription required ....................... Subscription required Subscription required Sep 24, 2024
....................... Subscription required ....................... Subscription required ........... Subscription required ........... Subscription required Subscription required Sep 24, 2024
....................... Subscription required ....................... Subscription required Subscription required Sep 24, 2024
....................... Subscription required ....................... Subscription required Subscription required Sep 24, 2024

EmployeesYear
...... Subscription required 2020

Aerial view:

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