Pacific Nickel eyes direct shipping ore from Kolosori mid-2023

Pacific Nickel is ramping up activities at its Kolosori nickel project in the Solomon Islands, aiming for commercial shipment of nickel laterite direct shipping ore (DSO) cargoes from mid-2023.

A local contractor has already commenced works on a 50-man construction camp and the DSO loadout wharf, with the construction of the mine haul road the final step to achieve shipping next year.

“We are pleased that the construction activities have commenced with a particular focus on the DSO load out wharf, perhaps the project’s most important component,” Pacific Nickel (ASX:PNM) CEO Geoff Hiller said.

“Once this is in place the operation will be unlocked.

“This should allow the project to ramp up to full production (around 1.3 million wet metric tonnes per annum of direct shipping nickel ore) during 2023.”

Trial stockpile consistent with DSO

The project’s trial ore stockpile, which was designed to blend ore types and approximate the characteristics of stockpiles expected during DSO production and shipping, has successfully provided the necessary information to be incorporated into the Definitive Feasibility Study (DFS), the company says.

Key data from the trial demonstrated the importance of stockpile height, mechanical turnover of the stockpile, and the need for stockpiles in windrows to maximise the drying effects of sun and wind.

This process is consistent with other saprolite DSO operations in SE Asia and the Pacific regions.

Development on schedule

Plus, financiers Glencore recently carried out a site visit to complete the agreement for a US$22 million project financing facility and DSO offtake sales – and Hiller said their positive feedback gives give the company confidence that development of the project is on track.

In addition, PNM has commenced work with PNG mining contractor HBS PNG Pty Ltd, who have now completed a site visit and will be confirming mining cost information for the DFS as soon as practicable.

The DFS is expected to be finalised within the next few weeks.

This article was developed in collaboration with Pacific Nickel Mines Limited, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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