Philippine miner Atlas Consolidated Mining and Development Corp. is hoping to reopen its Berong Nickel joint venture in Palawan, Southern Luzon later this year to take advantage of a rise in nickel prices. Atlas is also looking at setting up a processing plant.
Berong is a joint-venture between European Nickel Plc, Atlas Consolidated, and Toledo Mining Corp but the mine closed last February, laying off more than 600 workers after to a fall in nickel prices. But with prices up over 35 per cent over the past year Chairman Alfredo C. Ramos is hopeful that production will begin again soon and that it would sell to its traditional markets in Japan, South Korea and China.
Mr. Ramos said that if Berong Nickel Corp. resumed operations, the miner would still ship nickel ores to traditional markets like Japan, South Korea and China.
Berong Nickel has a supply agreement with BHP Billiton, the world’s largest miner, for the shipment of 500,000 MT of nickel ore per year until 2013. The mine is the world’s fourth-largest nickel laterite resource with a resource of about 275 million MT of nickel ores.
Atlas is also to study the viability of putting up a nickel processing plant to be able to supply a value-added product. This will mean a significant investment for the miner estimated at over P2 billion ($US 40 million) and finance officer Martin Buckingham has admitted that the company may end up having to find strategic partners for the project.
Meanwhile Berong shareholder European Nickel has decided to merge with Australia’s Rusina Mining NL to be able to spend $498 million for a nickel leach plant at the Acoje mine in Zambales.
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