China’s largest nickel producer, Jinchuan Group Limited, has taken a 13% stake in the Australian tin/nickel company and ITRI member Metals X (formerly Bluestone Tin).
Jinchuan subscribed to 117 million new Metals X shares for A$32.76 million. The deal, subject to approval by Chinese authorities, includes an offtake agreement for nickel oxide projects within Metals X’s Central Musgrave area in Western Australia. These include the Wingellina project, which could potentially produce some 40,000 tpy of recoverable nickel and 2,000 tpy of cobalt.
Jinchuan plans to produce 110,000 tonnes of nickel metal in 2006 and aims to expand its nickel and cobalt production by a further 35% by 2010. It is also one of China’s largest copper producers.
Metals X continues to advance its tin business in parallel with nickel. Its Collingwood mine in Queensland produces 3,500 – 4,000 tpy and the company plans to re-start its Renison operation this year. Pilot testing of tin tailings treatment at Renison is also due to commence shortly, prior to production of a bankable feasibility study.
