Pacific Nickel nabs Kolosori mining lease, aims to produce 1.3 million wmt per annum

Pacific Nickel Mines has been awarded a Mining Lease for the Kolosori Nickel Project on Isabel Island in the Solomon Islands from the Minister of the Ministry of Mines, Energy and Rural Electrification.

The company has also entered into a Surface Access Rights Agreement with landowners and a Mining Agreement with the Government of the Solomon Island – which sets out the mining, environmental and fiscal terms for the project.

“This is a major achievement for the company, and we welcome the support of the national, Isabel provincial governments and landowners to develop the Kolosori Nickel Project,” Pacific Nickel Mines (ASX:PNM) CEO Geoff Hiller said.

“Now that we have been awarded a Mining Lease, it allows the company to begin progressing development operations for Kolosori.”

The plan is to complete the Definitive Feasibility Study (DFS) for the project, expedite the wharf and haul road construction and establish a construction camp.

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

Direct Shipping Ore operation

Hiller says the timing of the DFS relies on a LiDAR survey and the construction of a second trial stockpile to assess moisture content – which is an important component of a Direct Shipping Ore (DSO) operation as it directly affects pricing and shipment handling.

“We are pleased to report that the initial LiDAR survey has been completed and that the second trial stockpile is under construction,” he said.

The LiDAR survey provides a detailed topographical plan which is critical to the Reserve Estimate and the long-term mining plan.

Following completion of the DFS, offtake financiers, Glencore, will undertake a site visit, complete due diligence and prepare final documentation for the facility.

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.