The proposed Koniambo ferronickel project in New Caledonia’s Northern province, near Kone, is one step closer to fruition following the completion of a feasibility study.
The study is one of two requirements that must be met before partners
Koniambo is one of the world’s largest and highest-grade nickel laterite deposits.
The measured and indicated resource is estimated to be 142.1 million tonnes grading 2.13% nickel, and there is an inferred resource of 156 million tonnes at 2.2% nickel. Both estimates are based on a cutoff grade of 1.5% nickel.
At a cutoff of 2% nickel, the measured and indicated resource slips to 75.6 million tonnes grading 2.47% nickel. Another 100 million tonnes of inferred limonite resource grades 1.6% nickel and 0.2% cobalt.
The partners envisage Koniambo as a 60,000-tonne-per-year nickel-in-ferronickel mining and smelting complex, with operating costs projected at US$1.65 per lb. The operation carries an estimated price tag of US$2.2 billion, not including US$500 million for working capital and various financing, interest and contingency costs.
The capital cost includes a US$600-million, 390-MW power station; the balance will cover a metallurgical plant and costs for mine development and infrastructure, including a port and roads.
Falco, SMSP, and the French government are arranging financing. If all goes as planned, the giant project could start up as early as 2009.
New Caledonia is also home to
In April, Japanese metal producers
Goro is expected to produce 60,000 tonnes nickel and 4,300-5,000 tonnes cobalt per year, beginning in September 2007.
Inco retains a 69% stake in Goro, with the three provinces of New Caledonia owning the remainder.
Goro’s estimated capital cost rings in at US$1.9 billion.
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