December 03, 2008

European Nickel Caldag nickel project held up at license stage

According to project owner European Nickel, full development of the Caldag nickel project in Turkey is still stalled for lack of a forestry license. The company said it now expects to receive that key missing permit only after the Turkish elections on July 22nd 2007.

Mining has been underway since the end of last year and at the moment the ore is being sold under a one year contract to Greek ferronickel producer Larco. European Nickel has said it intends to sell ore to customers in Greece and to China in response to increasing demand for nickel rich furnace feedstock.

However, development of the heap leach plant, which will produce 21,400 tonne per year of nickel in hydroxide, continues to be held up by the lack of a permit from the Ministry of the Environment and Forestry.