Rusina Mining N.L., the Australian mining company listed in London, is on track to complete a $500-million nickel processing plant in Zambales in the Philippines in two to three years, the head of the company said yesterday.
Rusina has hired a Chinese firm to conduct a feasibility study of the mine, which is expected to be finished this year, Chief Executive Officer Robert G. Gregory said.
"[The pre-feasibility study] showed a positive net value despite depressed nickel prices," he told reporters on the sidelines of a mining investment forum in Makati City. Partner European Nickel PLC will spend $10 million for the study, he added.
Mr. Gregory said their heap leaching technology — a mining process where nickel is extracted from crushed and mined ores — is cost-effective.
The pre-feasibility study, completed in November, found that the Acoje nickel project in Zambales has 34.4 million metric tons of nickel ore, with a nickel grade of 1.09%. The mine can produce 24,000 metric tons of nickel ore daily for a decade.
The company said the project would employ more than 800 workers who will mostly operate the mine, plant and quarry.
Mr. Gregory said the company was looking for a smelting company that will process chromite ores, which can also be mined from the Acoje site.
He added that nickel prices would have recovered to $6 to $7 per pound from current prices of $3 to $4 per pound when the nickel project starts operations in 2011 or 2012.
Nickel prices for cash buyers have dropped by more than half to $10,810 per metric ton from June prices due to weak demand, data from the London Metal Exchange showed. Tightening global credit was unlikely to affect Rusina since the company was not seeking funds until next year, Mr. Gregory said.
Also yesterday, Canadian miner Philippine Metals Corp. (PMC) said it was seeking to start exploration at its copper mines in Tacloban, Leyte and Malitao in Kalinga Apayao in the first half.
"Once we get the [environmental] permit, it will take us one or two months to get everything organized," Tom Vaillancourt, vice-president for operations of PMC, said in an interview. He added that their applications were pending at the head office of the Environment department.
PMC would spend $300,000 to explore the 9,895-hectare Taurus mine in Leyte and $200,000 for the 971-hectare Kalinga Apayao mine, Mr. Vaillancourt said.
Meanwhile, PMC expects to start exploration at its copper mine in the town of Dilong in Abra in the second half.
"We want to take our time and make sure that we are doing the right things," Mr. Vaillancourt said. The company will spend $100,000 to explore the Abra mine.
PMC would list on the Philippine and Toronto stock exchanges when capital markets recover, he said.
Source: Business World, Manila
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