JOHANNESBURG (miningweekly.com) – Joint venture company Agata Mining Ventures (AMVI) was modifying its high-iron/low nickel direct shipping ore (DSO) operations to include shipments of ore containing higher nickel content to increase revenues at its Agata nickel laterite project in the Philippines.
AMVI, in which TVI Resource Development (TVIRD) held a 60% interest and Mindoro Resources the remainder, initially planned to ship about 55 000 wet metric tonnes (wmt) of high-iron/low nickel DSO, grading a minimum of 48% iron and 0.6% nickel, every three to four weeks upon start of operations.
To date, two shipments had been completed and a third shipment was nearing completion.
However, current market prices for nickel laterite ore containing 0.6% to 0.9% nickel and 49% iron had fallen to between $13/t and $15/t from an average price of $21/wmt to $23/wmt in the earlier part of 2014 and all of 2013, which had impacted operating margins.
TVIRD explained that, to offset this price drop, AMVI now planned to mine higher-grade saprolite ore – containing greater than 1.5% nickel – found in the deeper part of the nickel laterite orebody and to make two 55 000 wmt shipments of the ore in the near term, as current market prices for nickel laterite ore containing 1.5% nickel were between $38/wmt and $40/wmt.
Following the shipment of the higher-grade saprolite ore, AMVI planned to mine and make shipments consisting of both high- and low-grade ore to ensure that a blended higher selling price was obtained.
"We are pleased to see AMVI adjust its DSO operations in light of current depressed nickel laterite prices to maximise revenues and achieve healthier operating margins," TVIRD chairperson Cliff James commented.
He also pointed out that, while carrying out its DSO operations, AMVI had found more nickel laterite ore than had previously been identified at the Agata project.
“As such, a thorough drilling campaign on the Agata nickel laterite orebody has started to better understand the project's resource potential,” James said.
AMVI intended to produce a National Instrument 43-101-compliant resource update on the Agata nickel laterite project upon completion of the drilling programme, which was expected by mid-2015 or sooner.