Market and product
Mitsui joins Sumitomo Metal Mining nickel project
TOKYO, Sept 15 (Reuters) - Japanese trading house Mitsui& Co (8031.T: Quote)said on Wednesday it will join a $1.3 billion nickel project that SumitomoMetal Mining Co Ltd (5713.T: Quote) isdeveloping in the Philippines.
SumitomoMetal Mining, Japan'stop nickel producer, said in September 2009 that it would start commercialoperations at the 30,000 tonne-a-year Taganito nickel plant in August 2013 withplans to keep it running for 30 years. [ID:nT127908]
Mitsuisaid it would take a 15 percent stake in Taganito HPAL Nickel Corp, which isdeveloping the project, to help fuel its expansion in the nickel business.
SumitomoMetal Mining will see its stake fall to 62.5 percent from 100 percent. NickelAsia Corp, Phlippines' leading nickel mining firm, will own 22.5 percent.
Sumitomohas said the project would help it achieve total nickel output of 100,000tonnes in 2013, up from 65,000 tonnes currently.
TheTaganito plant uses high-pressure acid leach (HPAL) technology, which useslow-grade laterite ores to produce nickel.
Apartfrom Taganito, Sumitomo Metal produces 22,000 tonnes of nickel annually usingHPAL technology at its Coral Bay plant, also in the Philippines.
(Source:Reuters, Reporting by Chikako Mogi; Editing by Nathan Layne)
