JOHANNESBURG (miningweekly.com) – TSX-V- and Frankfurt-listed Mindoro Resources says its subsidiary, Agata Processing Inc (API), expects to complete a definitive feasibility study (DFS) for a nickel processing plant at the Agata project, in northern Mindanao, Philippines, by the end of this year.
TVI Resource Development (TVIRD) was the operator of the nickel processing plant project and had the right to earn a 60% interest in API from Mindoro.
The proposed plant would make use of a two-stage process, involving atmospheric tank leaching and low-pressure acid leaching, to process nickel. The two-stage process was specifically engineered by TVIRD in an effort to reduce the capital expenditure (capex) requirement for the project.
The joint venture (JV) partners expected to invest between $150-million and $200-million in capex to establish the plant, which would have the capacity to produce 7 000 t/y of nickel-equivalent product.
Mindoro pointed out that high-pressure acid leaching nickel processing plants required capex of more than $1-billion to establish.
“We are extremely pleased with the progress being made by the API JV in nearing completion of the DFS.
“Building on the current high iron/low nickel direct shipping ore (DSO) operation, the proposed nickel processing plant would receive feed from the same mining site and produce an intermediate nickel product at low costs. We look forward to completion of the DFS by the end of the year and the significant value we believe it will add to Mindoro's Agata project,” said Mindoro CEO Penny Gould.
The existing DSO operation at Agata was focused on the upper zone of the Agata laterite orebody.
The proposed nickel processing facility would process ore from the lower limone and saprolite zones to produce a mixed hydroxide product with about 40% nickel content, which would be sold to the stainless steel market.
Once the DFS had been completed, TVIRD would move into the detailed plant design and construction phases.