Media centre / News releases
News Releases
All of our press releases are formatted for online viewing and printing (RSS feed available).
KNS and Xstrata Nickel joint release: Koniambo Nickel gives and update on its New Caledonian project
Koné, February 1st, 2007
Koné, New Caledonia - Koniambo Nickel SAS (KNS) today announced the commencement of some early construction activity at its project site in New Caledonia’s North Province. The early construction program is a central element of the strategic renewal process introduced by the company in September 2006.
“The objective of this early construction program is to establish site access, construction infrastructure and construction utilities in advance of the main construction effort. Completing this work during the renewal program will allow us to advance the schedule for the construction works that will follow”, said KNS President, Michel Rioux.
“Our engineering, permitting, community relations and construction management teams are well advanced in their preparation for the initial contract packages. We will be working with the local communities over the next several weeks to ensure that they have a good understanding of the work and to obtain their input. There is a lot of interest, enthusiasm and support for Koniambo in the local communities and we look forward to advancing the project with our community partners.”
Primary elements of the early construction program will include site access, construction facilities (including construction offices and the starter camp), construction services and utilities (water and power).
KNS plans to invest in excess of U.S.$110M (11 billion XPF) during the strategic renewal program, including U.S.$70M (7 billion XPF) in New Caledonia, bringing the total funding commitment to date to more than U.S.$500M (50 billion XPF). Other initiatives that are currently underway and are part of our renewal program include:
- Employee development and training (New Caledonia and Canada)
- Community relations programs
- Local enterprise development
- Permitting
- Site investigation and characterization
- Environmental studies
- Re-vegetation programs
- Site maintenance
- Site fencing
*
* *
Backgrounder
Koniambo is a pyrometallurgical complex for the production of ferronickel, highly anticipated by stainless steel producers. Production is targeted to begin in 2010 and is expected to reach 60,000 tonnes of nickel per year, which represents approximately 5% of current world consumption.
In December 2005, Société Minière du Sud Pacifique (SMSP), a New Caledonian mining company partnering with Falconbridge Ltd. (now Xstrata), announced the construction of the Project based on the positive findings of the Bankable Feasibility Study and the Environmental and Social Impact Assessment.
SMSP is New Caledonia’s leading producer of nickel ore and one of the top nickel ore exporters in the world.
On August 15, 2006, Xstrata plc became the new owner of Falconbridge. Xstrata is recognized for its strategy and its commitment to growing the Group’s core commodity businesses, including nickel.
Xstrata is a major global diversified mining group, listed on the London and Swiss stock exchanges. Headquartered in Zug, Switzerland, Xstrata maintains a meaningful position in seven major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel, vanadium and zinc, with a smaller but profitable aluminium business, recycling facilities, additional exposures to gold, lead and silver and a suite of global technologies, many of which are industry leaders. The Group's operations and projects span 18 countries.
Xstrata Nickel is headquartered in Toronto, Canada, and is one of the commodity business units within the major global diversified mining group Xstrata plc.
Xstrata Nickel’s mining operations include five mines and processing facilities in Ontario, Canada; Quebec, Canada; a ferronickel mine and processing facility in Bonao, Dominican Republic; and a refinery in Kristiansand, Norway. Xstrata Nickel has a promising portfolio of growth projects-including Nickel Rim South in Canada, Kabanga in Tanzania, and Koniambo in New Caledonia.
Xstrata Nickel is the fourth largest global refined nickel producer, with annual managed production of more than 110,000 tonnes of refined nickel.
Contact: Stephane Camerlynck(687) 76 43 02