Miners eye Zimbabwe's nickel treasure
Sunday, 10 October 2010
LONDON, Oct 9 (Commodity Online): Mining giant Niger Uranium is eyeing the untapped nickel deposits in Zimbabwe.
Niger Uranium will be investing US$3.6 billion in nickel exploration in Zimbabwe and South Africa. Niger Uranium said in a statement that it had formed a joint venture with Southern African Nickel with interests in a portfolio of nickel projects in the two countries.
The investment would be spread over 20 years. Niger's investment in the country comes at a time when a number of foreign companies have shown a huge appetite to invest in the country's mining sector. Zimbabwe's mining sector, which is expected to grow above 30 per cent this year began to show signs of improvement after government liberalised the economy in 2009.
The country is endowed with mineral wealth, with over 40 different minerals known to exist and most of these have been exploited.
Among the base metals exploited in the country, nickel predominates in terms of value, although national production only amounts to about 1200 tonnes annually.
Production comes from several mines located on greenstone belts and form Platinum Group of Metals mining operations as a by-product.
With only one operational nickel smelting and refining facility and favourable geological conditions for the existence of nickel deposits, investment into this area is being encouraged.
Meanwhile, government-run, Minerals Marketing Corporation of Zimbabwe last year signed a memorandum of understanding with Jinchuan Nickel of China that might result in the bulk of nickel being sold in Asian markets.
Jinchuan group is the largest producer of nickel in China with an annual production capacity of 130 000 tonnes of nickel.
According to the company's website, the output of nickel and PGMs account for more than 90 per cent of the total produced in China. Niger said it is committed to investing about US$1,75 billion in explorations.
According to the terms of the joint venture signed between SAN and Niger Uranium, the parties would jointly develop this portfolio of nickel projects, which they believe have the potential to host large, shallow, low-grade sulphide-nickel deposits.
Niger Uranium had earlier agreed with South African company BSC Resources that SAN would be entitled to earn a 51-per cent stake in the Burgersfort project, which would become SAN and Niger Uranium's flagship exploration target.
SAN would also be required to provide technical and managerial expertise for the project. South Africa-based mineral resource exploration company Pangea Exploration has been subcontracted to undertake the exploration, sampling and metallurgical evaluation at the projects held under the SAN/Niger Uranium joint venture.
Niger Uranium will be investing US$3.6 billion in nickel exploration in Zimbabwe and South Africa. Niger Uranium said in a statement that it had formed a joint venture with Southern African Nickel with interests in a portfolio of nickel projects in the two countries.
The investment would be spread over 20 years. Niger's investment in the country comes at a time when a number of foreign companies have shown a huge appetite to invest in the country's mining sector. Zimbabwe's mining sector, which is expected to grow above 30 per cent this year began to show signs of improvement after government liberalised the economy in 2009.
The country is endowed with mineral wealth, with over 40 different minerals known to exist and most of these have been exploited.
Among the base metals exploited in the country, nickel predominates in terms of value, although national production only amounts to about 1200 tonnes annually.
Production comes from several mines located on greenstone belts and form Platinum Group of Metals mining operations as a by-product.
With only one operational nickel smelting and refining facility and favourable geological conditions for the existence of nickel deposits, investment into this area is being encouraged.
Meanwhile, government-run, Minerals Marketing Corporation of Zimbabwe last year signed a memorandum of understanding with Jinchuan Nickel of China that might result in the bulk of nickel being sold in Asian markets.
Jinchuan group is the largest producer of nickel in China with an annual production capacity of 130 000 tonnes of nickel.
According to the company's website, the output of nickel and PGMs account for more than 90 per cent of the total produced in China. Niger said it is committed to investing about US$1,75 billion in explorations.
According to the terms of the joint venture signed between SAN and Niger Uranium, the parties would jointly develop this portfolio of nickel projects, which they believe have the potential to host large, shallow, low-grade sulphide-nickel deposits.
Niger Uranium had earlier agreed with South African company BSC Resources that SAN would be entitled to earn a 51-per cent stake in the Burgersfort project, which would become SAN and Niger Uranium's flagship exploration target.
SAN would also be required to provide technical and managerial expertise for the project. South Africa-based mineral resource exploration company Pangea Exploration has been subcontracted to undertake the exploration, sampling and metallurgical evaluation at the projects held under the SAN/Niger Uranium joint venture.