Yin Ying cancels plan to process Vale?s low-grade nickel ores

A company called PT Yin Ying has decided to back down from a planned cooperation with nickel mining firm PT Vale Indonesia Tbk to process the latter?s low-grade nickel ores in South Sulawesi, Antara reported Friday.

Head of the South Sulawesi mining office, Gunawan Palaguna said that the lingering volatility in the price of nickel and the fact that the nickel ores grade provided by PT Vale was too low were seen as among of the reasons that have prompted Yin Ying to cancel the project.

He said that Yin Ying initially expected PT Vale to provide low grade nickel ores of 1.8 percent, but the latter is only willing to supply ores with purity of 1.3 percent.

Gunawan said he was disappointed with cancellation of the planned nickel ores processing project, adding that his office would try to find other investors to carry out the project. No confirmation was provided by Antara from the two firms.(*)