Shipping concentrate to Sherritt Nickel mine opens in Timmins

Situated near Timmins, Ont., the Redstone operation is expected to produce 10 million lb of nickel in concentrate per year and a financial bonanza for partners Timmins Nickel, a private company, and BHP-Utah Mines. Timmins and BHP hold a 51% and 49% interest in the mine respectively.

Although a relatively small mining operation, Redstone’s earning power is anything but small. In fact at current prices, Redstone’s 10- million lb of nickel production will generate revenues of more than $60 million this year — similar to that coming from a 140,000-oz-per-year gold mine.

Redstone’s cash flow punch comes from high grade ore, 453,000 tons in total, averaging 2.9% nickel per ton. Ores from the world’s largest nickel camp at Sudbury, Ont., average 1.5%.

The result is that, unlike some gold mines, Redstone will make plenty of money for its owners. Timmins Nickel, which is privately owned by Malcolm Slack and a group of associates, estimates mining and milling costs at $65 per ton. Milling is on a toll basis in Timmins.

Timmins Nickel can earn its interest by spending $4 million on mine development this year. Thereafter, both companies will share costs as to their respective interest.

Last January, when a portal to a decline ramp was collared, Timmins Nickel predicted production would begin by June. Last week’s first shipment of concentrate was well ahead of schedule.

Mining takes place on two levels, the second level being established at a depth of 250 ft.

Officials of Timmins Nickel say the company is planning a public offering later this year.

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