China Nickel Resources initiates first production line of Lianyungang project

The mining company unveils breakthrough in nickel refinery technology and new phase of rapid development.

China Nickel Resources Holdings Company Limited (“China Nickel Resources”), a leading integrated steel and mineral resources company in the PRC, announced that it has completed the pilot run and test of the first production line of its Lianyungang project which has commenced operation on 29 November. The development not only represents a substantial breakthrough in the Group’s nickel refinery technology, but also ushers in a new phase of rapid growth for the Group, according to a China Nickel Resources report.

The Group completed the acquisition of the Lianyungang project in late 2009 and commenced trial production of Tunnel Kilns No 1 and No 2 in September following their successful pilot run and test this August. Upon commencement of operations, all production lines together is expected to have an ore processing capability of 2 million tonnes a year. The output of more than 7% nickel contained pure high ferro-nickel alloy would reach 400,000 tonnes, equivalent to an annual output of about 30,000 tonnes of nickel metal. Enjoying a geographical advantage, the project has utilised the Group’s self developed high-tech and environmentally friendly noncoke reduction refinery technology instead of using other high cost methods such as blast furnaces, allowing it to substantially reduce production costs, provide enough nickel resource to the society at the same time reduce emission of pollutants, and generate long-term and sustainable revenue for the Group.

Mr Tong Shutong, Chairman of the Group, said, “The quality of the first batch of ferro-nickel alloy produced by using the Group’s energy-saving and advanced technology has fulfilled the expected benchmarks of success. Although we have met different problems in the process of Lianyungang project, we’re very proud of its smoothly progressing so far from construction to the commencement of production by our first line. We are confident that our expanding production capacity can meet the growing market demand for nickel metal in the future. We will continue to conduct pilot run and test of the remaining 9 production lines before commencing operation in the hope to start production before the first quarter of the coming year.”