Initial nickel, copper and cobalt production from the Voisey’s Bay mine and mill facilities will be delayed by at least one year, or until late 2000 at the earliest, Inco (N-T has announced.
Speaking at a metals conference in London, Chairman Michael Sopko cited the bogged-down environmental review and approval process as the primary cause of the delay, noting that it is now certain that the necessary environmental approvals for the mine and mill will not be obtained until late 1998 at the earliest — more than six months later than previously scheduled.
Inco stated that guidelines for the required environmental impact statement turned out to be broader in scope than had been anticipated, in response to extensive community hearings that have been held. The environmental impact statement will be submitted by Inco’s wholly owned subsidiary, Voisey’s Bay Nickel, as the next step in the review process. The study is expected to address aboriginal, cultural and socio-economic issues.
Inco estimates that more than US$13 million has already been spent on environmental studies and related work in connection with the mine and mill facilities.
Inco is reviewing several technical and financial issues related to the project, including possible financial terms that could be associated with impact and benefits agreements with aboriginal groups.
Meanwhile, in the South Pacific, Inco’s Goro nickel project in the French overseas territory of New Caledonia is proceeding to the US$50-million pilot plant stage.
Development work will encompass construction of an integrated pilot plant capable of processing 12 tonnes of ore per day, as well as engineering work related to the critical acid-pressure leaching processing circuit for an eventual commercial plant.
The project, 85% owned by Inco and 15% by French state-owned Bureau de Recherches Gologiques et Minires, is based on extensive nickel laterite deposits. The main Goro deposit hosts a drill-indicated resource of 165 million tonnes (dry weight) of laterite averaging 1.6% nickel and 0.16% cobalt. An initial mining zone with proven reserves of 47 million tonnes has been outlined as a 20-year source of feed for an eventual commercial plant.
A feasibility study, including an environmental impact study, was completed in March.
Through the pilot plant and engineering work, Inco hopes to demonstrate and validate the proprietary acid-pressure leaching and solvent extraction technologies it has developed to treat the Goro ores. The pilot plant will also provide a facility for the training and development of a local workforce.
Construction of the pilot plant is expected to be completed by early 1999.
The future commercial plant is expected to have an initial annual capacity of 60 million lb. nickel and 6 million lb. cobalt, subject to subsequent expansion which could double that capacity.
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