Atlas Mining unit eyes nickel supply deal with BHP Billiton
Atlas Consolidated Mining Corp. subsidiary Berong Nickel Corp. is in the midst of negotiations with Australian mining giant BHP Billiton for additional long-term supply of nickel laterite to BHP’s refinery in
This was revealed yesterday by BNC chief executive officer George J. Bujtor at the sidelines of ACMC’s annual stockholders’ meeting at the Valle Verde Country Club in
Bujtor said BNC has an existing five-year supply contract with BHP for 500,000 tons a year, renewable for another five years. The contract was signed in September last year.
However, BNC is now in the midst of another round of negotiations with BHP to increase the supply contract by 500,000 tons. Bujtor said an agreement may be reached by next month.
According to Bujtor, the supply contract with BHP, would not affect BNC’s own plan to put up a refinery. BNC’s project areas have a combined deposit of approximately 275 million tons of nickel ore at 1.5 percent nickel. “We have more than a sufficient amount,” Bujtor said.
Bujtor agreed with industry observations that the nickel industry must move to more value-added processing instead of just relying on the export of unprocessed laterite ore.
He pointed out that
He said BNC’s plans for a nickel refinery, may take three years to materialize.
ACMC executive vice president and chief financial officer Martin C. Buckingham expressed confidence yesterday that ACMC would post a higher revenue this year compared to 2007 with the start of operation of its Carmen Copper project and BNC’s nickel operations.
Buckingham tempered this projection as he expressed concern about the overall economy which could affect ACMC’s financial projections.
Buckingham pointed out that while the copper market outlook is looking good with the increase in copper prices to $3.83 a pound from under $1.00, a downturn in the global economy could sour the demand for copper ore.
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