MMC Norilsk Nickel's delegation, headed by Mr Roman Panov director of Overseas Operations Department, took part in an international forum Mining Indaba - 2012, which is held annually in South Africa.
In his speech at a plenary session of the forum, Mr Roman Panov outlined potential growth areas in South Africa, which is a priority region of the investment policy for MMC Norilsk Nickel. In accordance with the approved strategy of the company, besides nickel and other metals PGM production will also play an important role in further development of operations on the African continent.
Speaking about the Group's operations performance in 2012, Mr Roman Panov gave a favorable evaluation of 2011 results and provided information on production plans for 2012.
Alongside with its production operations, MMC Norilsk Nickel places high emphasis on social issues. The company puts systematic purposeful efforts to ensure a high level of safety and improve working conditions for employees resulting in reduced level of industrial accidents. African operations carry out HIV and TB prevention programs at their own expense.
South African Republic
MMC Norilsk Nickel jointly with African Rainbow Minerals, a South African company, owns 50% stake in Nkomati Nickel Mine (Nkomati), located in South Africa.
Proven reserves of Nkomati project amount to 159 million tonnes of ore, totally containing over 500,000 tonnes of nickel, 200,000 tonnes of copper and 150 tonnes of PGMs.
Nkomati is considered to be of great importance as a major investment project in South Africa developed jointly with South African company African Rainbow Minerals, the total amount of investments on the part of MMC Norilsk Nickel exceeds USD 200 million.
The total design capacity of the two Nkomati nickel concentrators amounts to 7.5 million tonnes of ore per annum.
In 2011 the plant for processing nickel and chrome ore reached the designed capacity, so in 2012 the plant will work at a design capacity, increasing nickel output by 58% as compared to 2011.
Botswana
The Group owns 85% of Tati Nickel shares (15% of shares belongs to the Government of Botswana). The project includes an open pit Phoenix, underground mine Selkirk, which is in preparation stage for open pit mining, dense media separation Plant and a concentrator.
Proven reserves of Phoenix deposit amount to 124.4 million tonnes of ore with nickel grade of 0.21% (245,600 tonnes of nickel).
To expand the life of the mine and enlarge the resource base of the company commissioned DMS Plant, processing 12 million tonnes of ore p.a. Nickel recovery at DMS is 75%.
Tati Nickel Project is the only project in the world to produce nickel concentrate from low grade ores with a metal grade of 0.1%, with the use of a new production flow sheet involving DMS plant.
In February 2011, Tati Nickel obtained a 3 year exploration license for the eastern part of Tekwane prospective area. As part of an intensive exploration program, RC drilling was performed in the northern flanks of Phoenix deposit, models of Phoenix and Selkirk ore bodies were actualized, in Q1 of 2012 the company will complete airborne geophysical survey and surface geochemical prospecting aimed at identification of the most promising mineralization occurrences within licensed areas.
Australia
MMC Norilsk Nickel is currently in the process of gradual re commissioning of a number of the company's operations in Australia, where the production was suspended for an indefinite period of time in 2009 in view of unfavorable economic conditions. As a result of 2010 internal audit, the Company's management considered it reasonable to restart operations in Australia.
After mine and concentrator restoration was completed, in July of 2011 Lake Johnston was restarted. During the reporting period the efforts were aimed at reaching the design capacity. As a result, at the end of January of 2012 Lake Johnston produced 2,405 tonnes of nickel in concentrate, the targets in terms of the quality of commercial products and nickel recovery were reached. The company plans a further development of technology to improve concentrator performance due to stabilization of production and process flow sheet optimization. Lake Johnston is to produce 8,400 tonnes of nickel in concentrate.
Based on the studies carried out in 2011, a decision was taken to start preparation of Honeymoon Well project with the production capacity of 40,000 tonnes of Ni per annum.
