Intex Resources hopes to be able to proceed with its ambitious nickel project in Mindoro by next year despite the current low prices of nickel in the world market.
Speaking to reporters at the sidelines of the 8th Asia Pacific Mining Conference and Exhibit, Intex Resources Group president and chief executive officer Erlend T. Grimstad, said that development of its Mindoro nickel project is estimated at $2 billion for stage 1 and an additional $900 million for stage 2.
Stage 1 development, Grimstad said would involve production of the mine’s limonite resources with a projected production of 40,000 tons of nickel per year and 3,000 tons of cobalt.
Stage 2, would bring the production of nickel to 80,000 tons and cobalt to 700 tons and would include the processing of saprolite resources.
Grimstad said all of Intex Resources Philippines’ production, would be sold to refineries.
Grimstad believes that the Mindoro nickel project could be a “really huge production with extremely low costs and can be competitive to other projects around the world.”
Grimstad remains upbeat on the project, even with prevailing low nickel prices.
According to Grimstad, “aside from low cost, what makes this project stand out is it is energy independent.”
He said the Mindoro nickel project, would produce up to 80 megawatts of its own electricity.
“We will be producing energy from our plants. Steam will generate electricity, more than what we will need,” Grimstad said.
Funding for the project, is still being worked out, Grimstad said, adding that Intex is looking either at getting a partner or resorting to borrowings.
“We are open to how we can fund it. We can also get in another partner to help us achieve this huge project, Grimstad said.
Intex’s pre-feasibility study shows that the Mindoro nickel mine can be among the lowest capital-cost facilities in the industry.
The mine enjoys the advantage of being situated in a low-cost setting compared to other similar projects. Furthermore, its laterite ore has favorable processing properties.
The study was prepared by Aker Kvaerner of Australia, a leading global provider of engineering services and integrated solutions for the mining and petroleum industries.
Aker Kvaerner has a solid reputation in the field of engineering relating to nickel-laterite projects. — Marianne Go