Mitsubishi sells stake at Weda Bay nickel project

Japanese giant firm Mitsubishi Corporation has agreed to sell a 3.4% ownership interest from its 33.4% stake in Strand Minerals, the owner of 90% of PT Weda Bay Nickel, to Pacific Metals Co. Ltd. (Pamco) of Japan for 3 billion Japanese yen.

A new shareholders agreement has been concluded among MC, Pamco and Eramet S.A., the owner of the remaining 66.6% of Strand Minerals.

Strand Minerals is a special purpose company owning 90% of the shares of PT Weda Bay Nickel, the entity undertaking the development of the Weda Bay Project, which is one of the largest undeveloped nickel deposit in the world and is located on the island of Halmahera. PT Weda Bay Nickel is also 10% owned by PT Antam Tbk

MC, since its participation in the Weda Bay Project in February of 2009, has been working closely with Eramet to assess the feasibility, in view of the FID (final investment decision) anticipated at the end of 2012.

MC will supply Pamco with the Weda Bay Nickel intermediate product which shall contribute to the secure procurement by Pamco of the nickel supply for their ferronickel production, and in turn enhance the economic viability of the Project. On the technology side, Pamco has been working independently and simultaneously on an atmospheric pressure leaching process, similar to the one developed by Eramet. In this respect, Pamco?s entry into the Project shall result in a positive synergy.

The latest data indicates 6.3 million tonnes of nickel contained in combined ore resources. The Project will use a hydrometallurgical process developed by Eramet at its research center in France. The Project will aim to achieve ultimate capacity of 65,000 tonnes of nickel per year. (romel)