Sumitomo implements pre-FS for Vale?s nickel processing plant
Friday, February 1 2013 - 01:37 AM WIB
Sumitomo Metal Mining Co (SMM) along with nickel mining company PT Vale Indonesia have jointly implemented a pre-feasibility study to determine the viability of a planned nickel processing plant using the High Pressure Acid Leaching (HPAL) method in Indonesia.
The two firms have also commenced an environmental impact assessment for this plan in accordance with regulations defined by the Indonesian government, according to SMM, which holds shares in Vale, as seen in the company?s website Friday.
Vale Indonesia owns the concession for the Pomalaa area of Kolaka Regency in Indonesia?s Southeast Sulawesi province, and has plans for the new development of a mine and construction of a processing plant, which recovers nickel and cobalt from low-grade nickel oxide ores.
SMM is participating in the pre-feasibility study to investigate the viability of the construction of a processing plant.
SMM is the global leader of HPAL technology which processes low-grade nickel oxide ores, and has a track record of successful commercial production of intermediate nickel products through Coral Bay Nickel Corporation.
SMM has capital participation in Vale since 1988, and is securing the nickel matte for electrolytic nickel production of SMM. Should this plan lead to commercialization, it is expected that the companies will jointly invest in the establishment of a new company and shall construct and operate a plant employing HPAL technology, with SMM as the operating partner.
SMM expects that this plan will contribute to achieving the expansion of nickel supply to 150,000 tons set out as a long-term vision in the 2009 3-year business plan.
Editing by Reiner Simanjuntak