Sumitomo Metal Mining to Extend Study for Taganito Ni Project

Sumitomo Metal Mining announced on Wednesday the firm extends feasibility study on nickel project in Mindanao, Philippines for another 1 year while the firm planned to finish the study in late 2008. The firm tries to review the cost for competitive operation under slower economy when nickel ingot price decreased to less than US$ 10,000 per tonne for the first time in 5 years.

The firm tries to launch second nickel project with high pressure acid leach, HPAL with Taganito Mining Corporation of Philippines after Coral Bay Nickel Corporation in Palavan, Philippines. The firm plans to produce nickel/cobalt mixed sulfide with 30,000 tonnes of nickel annually to feed Niihama nickel refinery in Ehime, Japan.

The firm keeps the long term target to expand the nickel production to annual 100,000 tonnes. The firm starts commercial operation of second plant of Coral Bay Nickel in April 2009. The second plant starts test operation of utilities including power generator in November, test of production equipment in the year and test of total plant operation in January 2009.

With the second plant, Coral Bay Nickel’s output capacity increases to 22,000 tonnes of nickel in nickel/cobalt mixed sulfide. The firm establishes annual 100,000 tonnes capacity in 2013 including expansion of electrolytic nickel output in Niihama.