Leading Chinese Stainless Steel Producer Tsingshan Expects to Bring Plant into Operation in 2014
Follows Strategic Alliance between Tsingshan and Royal Nickel
TORONTO, March 24, 2014 /CNW/ – Royal Nickel Corporation (TSX: RNX) (“RNC”) is pleased to report that Tsingshan Holding Group (“Tsingshan”), a party with whom RNC entered a strategic alliance in March 2013, is currently constructing the world’s first integrated nickel pig iron (“NPI”) plant to utilize nickel sulphide concentrate as part of the stainless steel production process. The plant is expected to begin operation within this year.
This significant innovation represents the first time that nickel sulphide concentrate will be directly used to create stainless steel. This innovation offers significant potential benefits to the producers of suitable nickel sulphide concentrate feed including lower costs due to simpler processing compared to traditional smelting and refining, and greater flexibility for more potential partners and customers. This plant is also expected to be possibly capable of handling nickel sulphide concentrate anticipated to be produced from RNC’s Dumont Nickel Project (“Dumont”).
Mark Selby, Interim President and CEO, commented, “The Tsingshan plant in China is an industry first and a positive development for projects such as Dumont. This process represents a new source of demand for nickel sulphide concentrate notably at a time when many NPI and ferronickel producers face feed shortages as a result of Indonesia’s recently implemented nickel ore export ban. We view Tsingshan’s investment in this pioneering process as a significant and positive development for the nickel sector, and for Royal Nickel.”
While the formal memorandum of understanding between RNC and Tsingshan (see RNC news release dated March 12, 2013) expired on December 31, 2013, the two companies are still in discussions with respect to 1) securing additional sources of near-term feed for use in Tsingshan’s new processing facilities and 2) the potential for Tsingshan to participate in the Dumont project through a concentrate offtake proposal.
About Royal Nickel Corporation
Royal Nickel Corporation is a mineral resource company focused primarily on the acquisition, exploration, evaluation and development of base metal and platinum group metal properties. RNC’s principal asset is the Dumont Nickel Project strategically located in the established Abitibi mining camp, in the municipalities of Launay and Trécesson, 25 kilometres northwest of Amos, Quebec. RNC has a strong management team and Board with over 100 years of mining experience in the nickel business at Inco and Falconbridge. RNC’s common shares trade on the TSX under the symbol RNX.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains “forward-looking information” including without limitation statements relating to concentrates anticipated to be produced at the Dumont project, the impact that Tsingshan’s plant could have on the nickel sector and RNC, and the possibility of RNC concluding an agreement or transaction with Tsingshan.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of RNC to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. There is no agreement with Tsingshan and therefore no assurance that RNC will in fact receive any benefit from Tsingshan’s innovation. Factors that could affect the ability of RNC to produce concentrates at Dumont include, among others, third party opposition or government delays in the permitting process, the actual results of development or construction activities; project delays; inability to raise the funds necessary to achieve development; general business, economic, competitive, political and social uncertainties; future prices of metals; availability of alternative nickel sources or substitutes; actual nickel recovery; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; accidents, labour disputes and other risks of the mining industry; political instability, terrorism, insurrection or war. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to RNC’s filings with Canadian securities regulators available on SEDAR at www.sedar.com.
Although RNC has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and RNC disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results or otherwise, except as required by applicable securities laws.
SOURCE Royal Nickel Corporation
For further information:
Rob Buchanan
Director, Investor Relations
T: (416) 363-0649
www.royalnickel.com
Mélanie Corriveau (French contact)
Community Relations Coordinator
T: (819) 727-3777