Sumitomo plans $150m plant

Sumitomo plans $150m plant

TOKYO (Reuters): Japan's biggest nickel producer, Sumitomo Metal Mining Co Ltd, said on Monday it will go ahead with a laterite nickel project in the Philippines using a new acid leaching technology, jointly with Rio Tuba Nickel Mining Corp.

SMM said that it would spend $150 million to build a nickel plant on property adjacent to the Rio Tuba Mine on Palawan island, aiming to produce about 10,000 metric tons of nickel and 700 tons of cobalt per year over the project's 20-year span.

"It is aimed at enabling SMM to maintain its position as one of the world's leading producers of nickel through the achievement of nickel-oxide ore-processing technologies and engineering expertise," the company said in a statement.

SMM plans to start building a plant after acquiring environmental and other approval of Philippine authorities. It expects to start operation at the new plant around the summer of 2004.