NEW YORK Royal
Nickel Corp. has pushed back the estimated commissioning of its
Dumont nickel project in Quebec to the "first half of 2016,
followed by production ramp-up throughout 2016."
company had previously forecast project commissioning in late
amm.com, March 27).
The company expects to
achieve the necessary permitting for the project by mid-2014,
when it will begin construction. Completion of partnership and
financing arrangements are still expected to be finalized in
advance of the receipt of permits. The company told
AMM last month that it was in discussions with "a
number of Japanese mining houses" regarding financing (
amm.com, May 2).
feasibility study completed by Ausenco Ltd. shows that Royal
Nickel is forecasting initial nickel production of 73 million
pounds annually, increasing after five years to an annual
average of 113 million pounds for the remainder of the 20-year
mine life. The project is estimated to have an after-tax net
present value of $1.1 billion, generating an estimated annual
average of $427 million in earnings before interest, tax,
depreciation and amortization (Ebitda).
"When in production,
Dumont is expected to be one of the largest base metal mines in
Canada and one of the top five sulphide nickel producers
globally, targeting production of more than $27 billion of
nickel over 33 years based on current reserves alone," Royal
Nickel president and chief executive officer Tyler Mitchelson
said in a statement.
The mine is designed
to produce ore at a rate of approximately twice the capacity of
the mill, which will serve to mitigate the risk of feed
shortages and allow the highest-value material to be processed
first. As a result, an ore stockpile will be generated to
continue to feed the mill for an additional 13 years at the end
of the mine life, with the tailings deposited in the open
Earlier this year, the
company signed a memorandum of understanding with Tsingshan
Holding Group Co. to help secure supply for a new Tsingshan
plant processing sulfide nickel concentrate, with the
possibility of an offtake agreement to follow (
amm.com, March 12).