Pacific Nickel Mines (ASX:PNM) is looking to ramp-up ore production at its Kolosori Nickel Project in the Solomon Islands to about 1.5 million tonnes per annum within the next 3-4 months.
The $33.87 million market capitalisation company says the ramp-up comes following the completion of the first shipment of ‘high-grade’ direct shipping ore (DSO) from Kolosori to the company’s offtake partner Glencore (LON:GLEN).
Pacific Nickel reports the bulk carrier departed on 26 December 2023 with about 60,000 tonnes of ‘high-grade’ nickel. The average grade for the first DSO shipment to Glencore was more than 1.75% nickel.
The company has received its first payment of 85% of the value of the first shipment of DSO nickel from Glencore, with the balance expected to be paid upon adjudication of the cargo at the discharge port.
Pacific Nickel Chief Executive Officer (CEO) Geoff Hiller says the company hopes to be at full ore production at Kolosori from April onwards ahead of exploration to target additional ore sources in the dry season.
Pacific Nickel Mines is a nickel explorer, developer, and producer with 2 projects sitting on Isabel Island within the Solomon Islands.
The company is the majority owner (80%) of Kolosori, with the remaining 20% being owned by the landowners associated with the project.
As of 30 September 2023, Pacific Nickel Mines had $23.075 million cash at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Pacific Nickel Mines
