Daewoo enters nickel project

Daewoo enters nickel project

SEOUL (AFP): South Korea's Daewoo Corp. has signed a joint- venture agreement with Australia's Yakabindie Nickel Ltd. under which it will take a 10 percent production share, Daewoo said here yesterday.

A Daewoo statement said that under the contract signed here Tuesday Daewoo would put up US$70 million for mine development, slated to start later this year.

In return it would take 10 percent of the nickel output from the mine, where reserves are estimated at some 200 million tons, over the next 22 years.

The Korean company would also take 10 percent of the sales' returns.

Its initial annual share, estimated at 6,400 tons, would be used to supply the domestic market and the company hopes to eventually export to Asian and European markets, Daewoo said.