Platts reported that African mining company Albidon is sticking to plans to ramp up nickel production at its Munali mine in Zambia, but is set to defer work on two projects due to current financial instability.

Albidon said that production ramp up continued at Munali with 5,606 tonnes of concentrate produced at an average grade of 6.72% nickel. It added that mill ramp up was proceeding to expectations with nameplate capacity of 75,000 tonne per month already being exceeded on a number of occasions without any discernible problems.

Mill throughput also ramped up towards the nameplate capacity from 25,000 tonnes in July to 55,000 tonnes in August and 67,000 tonnes in September 2008. Initial sales proceeds of USD 3.1 million were received in October 2008 from Jinchuan for July and August deliveries.

Albidon said that current global financial instability has resulted in a decision by JV participants in its Zambian uranium project to defer further work on a feasibility study apart from updating the resource estimate and some metallurgical test work.

It started the expansion of its 100% owned Munali mine in Zambia in September 2008 that will produce more than 10,000 tonnes of nickel concentrate a year. The expansion program is expected to be completed in the first quarter of 2009.

Albidon said in a statement that its intention is to increase the processing facility's throughput to a nameplate capacity of 102,000 tonnes per year from 900,000 tonnes per year and for annual concentrate output to exceed 10,000 tonnes per year.