Toledo Mining Sends Third Nickel Shipment To BHP Billiton
August 20 2009 - 2:58AM
Dow Jones News
Toledo Mining Corporation Plc (TMC.LN), a nickel exploration and
development company, announced Thursday that a third shipment of
ore was shipped to BHP Billiton's or BHP (BLT.LN) Yabulu refinery
from the Berong mine on Palawan island, Philippines, on Aug.
11.
MAIN FACTS:
-The shipment contained 48,108 tonnes of ore at 1.5% nickel (481
tonnes contained nickel on a dry basis) and 30% iron.
-Due to severe bad weather caused by tropical storms, the
transhipment of ore from barge to the ship moored offshore was
severely delayed.
-BHP has lodged a claim for demurrage, the amount of which is
being contested by Berong Nickel Corporation (Berong) which
declared force majeure during the ship loading.
-Even taking account of BHP's claim, the shipment is cash
positive to Berong.
-Berong has now completed the shipment of stockpile material
which meets the BHP specification.
-150,000 wet metric tonnes of ore remain on the stockpile at
Berong for which Toledo continues to seek customers.
-The contract between Berong and BHP calls for a minimum
shipment of 300,000 wet metric tonnes per annum to the Yabulu
refinery of Queensland Nickel.
-So far this year, only half of this contracted amount has been
taken
-It was reported in July that BHP has reached agreement in
principle to sell the Yabulu refinery to Professor Clive
Palmer.
-The consequences of this development for the timing of future
shipments from Berong to Yabulu are under discussion.
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com