Global Ferronickel affiliate starts Palawan operations
Ipilan Nickel Corp., an affiliate of listed Global Ferronickel Holdings Inc. (FNI), is set to start operations and trial shipments by the last quarter of the year.
The development of the Ipilan mine in Palawan will soon commence after the Department of Environment and Natural Resources (DENR) approved its Declaration of Mining Project Feasibility (DMPF).
The DMPF is the final document that must be issued by the DENR-Mines and Geosciences Bureau before a mining project can start operations.
The approval covers 343.3 hectares while the remaining area of more than 2,000 hectares will still be subject to further exploration. Approved annual production rate is 1.5 million wet metric tons (WMT).
Based on the study of the Philippine Mineral Reporting Code, the explored portion of the property has proven and probable ore reserves of 28.6 million WMT and recommended to extend the mine life beyond 12 years.
Also included is the recommendation to increase mine production capacity to three million WMT within two years as part of the 2015 pre-feasibility study.
“We plan to pursue the expansion as recommended and the exploration work in order to maximize the underexplored property. We have the option to maximize production depending on market conditions and to further increase capacity pending the results of exploration and approval of permits,” the company said.
In August 2015, FNI acquired for $50 million the Southern Palawan Nickel Ventures Inc. (SPNVI), which owns at least 90 percent of Ipilan Nickel Corp.
The Ipilan mine in Palawan will augment the company’s operations in Surigao and double FNI’s yearly production capacity as it is projected to have an annual production rate of up to three million MT on full capacity.
The Cagdianao mine in Surigao operates only from April to October while the Ipilan mine would operate from November to July.
FNI said putting the Ipilan mine into operation would help ensure the supply of medium and high-grade saprolitic ore to the steel market.
FNI’s doubled production capacity would make it the second largest producer of nickel direct shipping ore in the country, next to Nickel Asia Corp.