Albidon sells first concentrate from Munali nickel project

Wednesday, 15 Oct 2008

It is reported that AIM and ASX listed mining company Albidon has recorded its first revenue from the sale of concentrate from its Munali nickel project in Zambia a move it described as significant step in the transition from development to producer for the company.

Albidon said that 'In addition, it is actively seeking to sell a parcel of low grade out of specification concentrate, produced during the beginning of Commissioning of the concentrator, when mineralized waste was being fed into the concentrator."

It said that commissioning was progressing well, with the nameplate capacity of 900 000 tonnes per year being achieved on a number of occasions. Focus at Munali remained on increasing the processing facility throughput to nameplate capacity and once this was reached, it aimed to expand its targets to 1.2 million tonnes a year of ore mined, which would generate between 10,000 tonnes per year of nickel, in a high quality nickel copper cobalt platinum group metals concentrate.

Demand from China for nickel and stainless steel has been relatively robust, with China expected to maintain a minimum growth rate of 7% to 8% annually as compared to the recent 11%.