SNNC, a JV between SMSP and POSCO is to double ferronickel production capacity at its Kwangyang plant by 2013.

Current annual capacity at the plant is 27,000 tonnes, which is to be increased to 54,000 tonnes by constructing a new large-scale electric furnace of the same type as now in operation in the site.

Main feed to the plant's existing furnace has been the nickel ore from New Caledonia with nickel content of 2.3%, but the expansion plan is based on ores of 2.1% nickel content from SMSP's mines in New Caledonia, so that SMSP, the partner and the ore supplier, can secure raw material feed to meet the JV's requirements.

SNNC is the first ferronickel producing plant in the world in which a stainless steel mill as well as a big consumer of ferronickel, directly participated. The plant was originally aiming at 30,000 tonnes per year, which has not been achieved, but is allegedly confident of 27,000 tonnes per year.

Just after the first furnace started operation, POSCO proposed to its partner SMSP to undertake a process to construct a new one, but the New Caledonian partner was a bit cautious about the expansion because of uncertainty in its supplying sufficient quantity of ores of required quality.

After all the talks between the partners, the expansion plan POSCO has long desired is now to be materialized by changing the required nickel content in ore from 2.3% to 2.1%.

(Sourced from TEX Report Limited)