ERAMET sells part of interest in Weda Bay nickel project to Mitsubishi
Thursday, February 19 2009 - 07:15 AM WIB
PT Weda Bay Nickel is the project and exploration company for the Weda Bay nickel cobalt project on the island of Halmahera, North Maluku.
Under the terms of the agreement entered into by the parties, Mitsubishi Corporation has agreed to pay ERAMET approximately US$145 million. This amount includes Mitsubishi Corporation's pro rata share of the capital of Strand Minerals and other expenditures incurred by ERAMET since the acquisition of Weda Bay in 2006 to assess the feasibility of the project.
ERAMET and Mitsubishi Corporation will join forces to finalize the project studies required in order to take the final development decision, the company said.
The Weda Bay deposit is one of the largest undeveloped nickel projects globally, with an updated 5.1 million tons nickel contained in measured, indicated and inferred ore resources, with a targeted additional annual capacity of up to 65 000 tons of nickel. The project would use a hydrometallurgical process developed by ERAMET at its research centre in France.
"This partnership is a major milestone for the Weda Bay project. Mitsubishi Corporation is a front-rank industrial and commercial operator in Indonesia, as well as a major player in mining and metallurgy through its participation in several large projects and operating facilities worldwide. Weda Bay is a world class deposit, which has the potential to become a major producer of nickel for the long term. Studies for the Weda Bay project will continue with the support of Mitsubishi Corporation, in full agreement with our Indonesian partner Antam," Patrick Buffet, Chairman and CEO of ERAMET said.
State mining firm PT.Aneka Tambang (Antam) is the owner of the remaining 10% of PT Weda Bay Nickel, and has an option to raise its stake to 25%. (denny)