Production at one of the world's largest nickel- and cobalt-mining and processing ventures, the Ambatovy project, in the Indian Ocean island nation of Madagascar, is set to begin in 2010.
Construction on this project started earlier this year.
Major project shareholder Sherritt International and contractor and shareholder SNC-Lavalin Group have reported that financing arrangements for the mammoth project were completed in August.
Speaking in Toronto, Canada, at a meeting of executives of companies with mining and infrastructural investment projects in Africa, SNC-Lavalin senior vice-president and Ambatovy project director Albert Sweetnam said the project's budgeted cost was $3,225 billion, making it the biggest investment ever in Madagascar.
"Commitments of $1,25-billion are in place and a further $1,3-billion of commitments are to be provided in the next six months," said Sweetnam, adding that "Ambatovy has the largest ever debt financing in the mining sector, at a ratio of 53% debt to 47% equity".
SNC-Lavalin of Canada, which has a 5% stake in the project, is responsible for engineering, procurement, construction and commissioning of the ore plant, the 220-km slurry pipeline and the nickel/cobalt refinery, as well as for the expansion of the port at Tomasina.
Sherritt International, which, like SNC-Lavalin, is a Canadian company, has a 40% interest. The other shareholders are Sumitomo Corporation, of Japan, and Korea Resources, of South Korea, with a 27,5% stake each.
Ambatovy's annual design capacity is 60 000 t of London Metal Exchange class 1 nickel, 5 600 t of cobalt and 190 000 t of ammonium sulphate.
Ambatovy's reserves of high-grade ore are estimated at 125-million tons at 1,04% nickel and 0,10% copper, enough to sustain an estimated operating life of 27 years. There is a further 39,4-million tons of lower-grade ore, grading at 0,69% nickel and 0,064% copper.
Apart from the obvious benefits that will accrue to the investors, the project will offer Madagascar a host of social-development benefits, including job opportunities.
Construction alone is expected to create more than 7 700 jobs at its peak, while the permanent mine and plant labourforce is expected to be 400 strong and 1 200 strong respectively. Locals are expected to constitute between 85% and 95% of the total employment complement.
The project will create more jobs through subcontracts in various areas, such as camp development, communications, water and sanitation provision and health facilities.
Construction on this project started earlier this year.
Major project shareholder Sherritt International and contractor and shareholder SNC-Lavalin Group have reported that financing arrangements for the mammoth project were completed in August.
Speaking in Toronto, Canada, at a meeting of executives of companies with mining and infrastructural investment projects in Africa, SNC-Lavalin senior vice-president and Ambatovy project director Albert Sweetnam said the project's budgeted cost was $3,225 billion, making it the biggest investment ever in Madagascar.
"Commitments of $1,25-billion are in place and a further $1,3-billion of commitments are to be provided in the next six months," said Sweetnam, adding that "Ambatovy has the largest ever debt financing in the mining sector, at a ratio of 53% debt to 47% equity".
SNC-Lavalin of Canada, which has a 5% stake in the project, is responsible for engineering, procurement, construction and commissioning of the ore plant, the 220-km slurry pipeline and the nickel/cobalt refinery, as well as for the expansion of the port at Tomasina.
Sherritt International, which, like SNC-Lavalin, is a Canadian company, has a 40% interest. The other shareholders are Sumitomo Corporation, of Japan, and Korea Resources, of South Korea, with a 27,5% stake each.
Ambatovy's annual design capacity is 60 000 t of London Metal Exchange class 1 nickel, 5 600 t of cobalt and 190 000 t of ammonium sulphate.
Ambatovy's reserves of high-grade ore are estimated at 125-million tons at 1,04% nickel and 0,10% copper, enough to sustain an estimated operating life of 27 years. There is a further 39,4-million tons of lower-grade ore, grading at 0,69% nickel and 0,064% copper.
Apart from the obvious benefits that will accrue to the investors, the project will offer Madagascar a host of social-development benefits, including job opportunities.
Construction alone is expected to create more than 7 700 jobs at its peak, while the permanent mine and plant labourforce is expected to be 400 strong and 1 200 strong respectively. Locals are expected to constitute between 85% and 95% of the total employment complement.
The project will create more jobs through subcontracts in various areas, such as camp development, communications, water and sanitation provision and health facilities.
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Edited by: Creamer Media Reporter
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