Pacific Metals to Get Interest in Weda Bay Ni Project

Japanese major ferronickel maker, Pacific Metals announced on Thursday the firm agreed to get around 3% interest in Weda Bay nickel development project in Indonesia from Mitsubishi Corporation for 3 billion yen. Pacific Metals will join in the one of the promising world’s nickel projects in scale and in quality to secure nickel material while the firm provides the technical expertise in the project with atmospheric pressure leaching process.

Pacific Metals will buy 3.4% share in Strand Minerals, which is special purpose company to own 90% interest in Weda Bay project, from Strand Minerals’ 33.4% shareholder of Mitsubishi Corporation. Pacific Metals agreed for the project participation with Eramet of France, which controls 66.6% of Strand Minerals.

The project is under feasibility study. The developers expect they can reach final investment decision by the end of 2012. They targets annual 65,000 tonnes of nickel production based on around 6.3 million tonnes of reserve.