MRL Gold to build 'small' nickel processing plant in Surigao del Norte

Nickel and gold miner MRL Gold Phils. Inc. on Wednesday said it is building a $100-million nickel processing facility in Agata, Surigao del Norte starting 2014.

 

The feasibility study for the project is now in its final phase and MRL Gold and partner TVI Resource Development (Phils.) Inc. expect to have a complete study next year. 

 

The construction is expected to begin in 2014, and the subsequent commissioning and commercial production to start in 2016. Once operational, the plant has a processing capacity of 500,000 metric tons of  nickel ore and a output 7,000-metric ton (MT) output of nickel products.

 

The plant will use the the cheaper atmospheric leach process.

 

“We believe it can be done with $100 million,” MRL country president and CEO Tony Climie said in an interview with reporters on Wednesday. 

 

“The operation is fairly small. But we believe we have enough resource to put up a processing plant. The feasibility for that is underway,” Climie added.

 

Noting that the mine site is near the Philippine Sea that connects to the Pacific Ocean, “so we have a lot of infrastructure advantages,” Climie noted. 

 

A per-feasibility study also showed that the mine has 20-year lifespan, according to the company.

 

However, the Bureau of Mines and Geosciences needs to review and have a final say on the main feasibility study.

 

MRL Gold is now in search of financing options for the processing plant, a search that will run run full steam once the Mines Bureau gives the feasibility study the green light.

 

According to its business plan, MRL Gold will directly ship nickel ores to the base metals market in China in 2013 while stepping up exploration activities in four of its major projects in Western Visayans, Southern Luzon, and Surigao del Norte.

 

The company has concluded a two-tranche placement of 42.78 million units by development partner TVI Resource worth a combined C$2.2 million that financed the the joint venture MRL Nickel Inc. MRL Gold also used the proceeds from the first tranche to repay in full a loan TVI Resource extended to the Philippine-based miner last July. 

 

TVI Resource is the Philippine affiliate of Canada's TVI Pacific Inc. — VS, GMA News