Atlas subsidiary set to start nickel mine in Palawan

Atlas Consolidated Mining and Development Corp. (ACMDC) said subsidiary Berong Nickel Corp. (BNC) has been issued a special mines permit (SMP) and may now start full-scale commercial mining of laterite nickel ore in Palawan.

The SMP, issued by the Department of Environment and Natural Resources, is valid for a term of one year commencing on Nov. 15 this year and may be renewed for another year.

ACMDC said the issuance of the SMP allows BNC to commence its mining operations while it completes a feasibility report as part of the requirements pertaining to its application for a commercial mineral production and sharing agreement (MPSA).

The Berong nickel project is a joint venture among ACMDC, Toledo Mining Corp., and Investika Ltd.

ACMDC said current activities are focused on the extraction of a bulk metallurgical sample of approximately 30,000 dry metric tons (equivalent to approximately 45,000 metric tons).

The bulk metallurgical sample will be shipped to Hainan Yulai Steel Co. Ltd., a Chinese stainless steel producer.

ACMDC said customer demand for the laterite ore is very strong.

The company is in talks with numerous Chinese and Japanese customers for a short-term supply of up to two years.

ACMDC said exports are targeted to reach 80,000 to 90,000 dry metric tons (dmt) of ore for this year, 620,000 dmt next year and one million dmt in 2008 and beyond.

The grade of laterite ore to be mined in the first year of operations is estimated to average approximately 1.9-percent nickel.