Eramet to boost nickel output with Weda Bay acquisition

French nickel producer Eramet SA plans to double its output with the acquisition of Weda bay Minerals Inc., a Canadian company that has huge nickel concession in Halmahera Island, Maluku.

?The acquisition of Weda Bay brings significant additional nickel resources to the nickel division, and will eventually allow the division to double its output through construction of a processing plant. This plant will make use of hydro-metallurgical processing which has been studied at Eramet's research centre. The plant will process laterite ore at Halmahera, which comprises saprolite ores and limonite ores in equal parts,? said Jacques Bacardats, Chairman of Eramet in a statement released Tuesday.

He said Weda Bay project would compliment the company?s New Caledonia nickel mines.

"Weda Bay and its Halmahera project offer all the strategic advantages needed to create a high-quality avenue of growth for our nickel business: one of the most substantial nickel deposits not yet exploited; an excellent geographical position in Indonesia that will allow us to deliver to our major Asian clients, whose demand continues to grow....,? he said.

As per May 1, 2006, Eramet had controlled 95.48 percent of common shares outstanding. Eramet acquired Weda Bay, which is listed in Toronto Stock Exchange, through friendly take over for C$ 270 million.

Weda Bay is developing the Halmahera Nickel Cobalt Project, which is one of the world's largest undeveloped nickel projects. The project resources are 155 million tons grading 1.45% Ni and 0.09% Co of measured and indicated resources plus 123 million tonnes grading 1.53% Ni and 0.08% Co of inferred resource. Resource estimates are at a cutoff grade of 1.0% Ni.

Weda Bay has completed an independent Pre Feasibility Study, which concludes that the Halmahera project is viable.

State nickel miner PT. Aneka Tambang has 10 percent stake in Weda Bay nickel project.

Eramet is an integrated mining and metallurgy group that produces non- ferrous metals and their chemical derivatives, high-performance special steels, nickel alloys and superalloys and high-performance parts for industry. With its historical roots in nickel mines, which it has been operating for over a century in New Caledonia, Eramet actively pursues a policy of growing and broadening its business base. Focusing on the development of high value- added materials, the Group has global positions in all three of its lines of business: high-performance alloys & special steels, manganese and nickel. (alex)