Mar 13 2013
Royal Nickel Corporation ("RNC") is pleased to announce it has signed a memorandum of understanding ("MOU") with Tsingshan Holding Group Co., Ltd. The MOU sets out the objectives of the parties to work together in relation to downstream concentrate processing and the potential to enter into an offtake and/or partnership arrangement.
Tsingshan is the second largest Chinese stainless steel company and one of the leading innovators in the development of vertically integrated nickel pig iron ("NPI") and stainless steel production operations.
After working with RNC for more than a year, Tsingshan has recently completed its own analysis and testwork on a sulphide nickel concentrate (utilizing a process similar to the one previously announced by RNC in the news release dated October 3, 2011) in its integrated NPI/stainless steel production facilities and plans to make the necessary investment in plant and equipment once concentrate feed is secured. This innovation represents the first time that nickel sulphide concentrate would be directly used to create stainless steel. This plant is also expected to be capable of handling nickel sulphide concentrate anticipated to be produced from the Dumont Nickel Project ("Dumont").
In the non-binding MOU, RNC and Tsingshan have agreed to work together in the following ways:
Tsingshan expects to:
- Construct a plant capable of processing sulphide concentrate
- Consider making an offtake proposal to RNC following the completion by RNC of the Dumont bankable feasibility study. The bankable feasibility study is expected to be completed by mid 2013
- Enter a partnership with RNC at the appropriate time following the completion of the Dumont bankable feasibility study to the satisfaction of Tsingshan.
RNC expects to:
- Continue to share its downstream processing expertise for processing nickel sulphide concentrates with Tsingshan
- Support Tsingshan to secure concentrate feeds
- Consider partnership proposal from Tsingshan
"Tsingshan is one of the largest, fastest growing, and most innovative stainless steel companies in the world. Since the emergence of NPI, Tsingshan has been a leader in the development of vertically integrated NPI/stainless steel operations, and its endorsement of the RNC approach to processing sulphide concentrates is a significant vote of confidence in our company. We look forward to continuing to work with Tsingshan while we complete the bankable feasibility study for the Dumont Nickel Project," said Tyler Mitchelson , President and CEO of Royal Nickel Corporation.
"Royal Nickel has a highly experienced nickel industry management team and we are very pleased to have the opportunity to integrate this downstream concentrate process for nickel concentrate into our stainless steel business," said Mr. Xiang Guang Da, Chairman of Tsingshan Group. "We see great potential for the Dumont project to become a premier large scale and low-cost nickel mine and a great source of feed for our operations for many decades to come. Dumont's high grade, clean nickel concentrate is one of the ideal concentrates for use in our process."