Photo by: Pacific Nickel
Name of the Project
Kolosori nickel project.
Location
Solomon Islands.
Project Owner/s
Pacific Nickel.
Project Description
The Kolosori nickel project is an advanced stage direct shipping ore (DSO) nickel laterite project progressing to development.
The project has a Joint Ore Reserves Committee-compliant mineral resource estimate of 6.02-milllion tonnes at 1.52% nickel.
The scoping study envisages estimated production of 1.3-million tonnes a year at 1.5% nickel for 19 500 t of contained nickel.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has an estimated net present value of A$85-million and an internal rate of return of 152%, with a payback of one year.
Capital Expenditure
The project is estimated at $20-million.
Planned Start/End Date
DSO production is expected to start in the third quarter of 2023.
Latest Developments
Glencore has provide Pacific Nickel Mines with a letter of commitment confirming its intention to provide up to $22-million in funding for the Kolosori project.
Pacific Nickel anticipates that it will be in a position to effect an initial drawdown of $3-million once documentation has been completed. This will enable the company to continue the current development works.
The company has said that the funds raised through the arrangements with Glencore would be sufficient to meet preproduction funding requirements for the project.
The loan will have a three-year repayment term, starting after the first shipment of ore, with no mandatory hedging in place. The offtake agreement will run for a six-year period on a take-or-pay basis, with all of the mine’s production covered under the offtake agreement.
Key Contracts, Suppliers and Consultants
Resindo (definitive feasibility study manager and front-end engineering design); and HBS PNG (early contractor arrangement).
Contact Details for Project Information
Pacific Nickel, tel +61 403 940 518 or email info@pacificnickel.com.