Conic Metals Corp (TSXV:NKL) is pleased to provide an update on the production results from the Ramu Nickel-Cobalt mine in Papua New Guinea (“Ramu”). Conic owns an 8.56% joint-venture interest in Ramu which is operated by the Metallurgical Corporation of China (“MCC”).
For the 4th year in a row, Ramu exceeded its nameplate capacity, producing a total of 33,659 tonnes of contained nickel or 103% of nameplate capacity and 2,941 tonnes of contained cobalt in its mixed hydroxide product (“MHP”). MHP is one of the key raw materials to produce nickel sulphate which is used to produce lithium-ion batteries for the electric vehicle and energy storage sectors.
In the second half of 2020 Ramu produced 17,421 Mt of contained nickel and 1,566 Mt of contained cobalt, compared to 16,238 Mt of contained nickel and 1,375 Mt of contained cobalt in the first half of 2020. In addition, the second half of 2020 saw much stronger nickel prices with the LME price averaging $6.84 per pound in the second half of 2020 compared to $5.66 per pound in the first half of 2020, an increase of more than 20%. Current LME nickel prices are above $7.50 per pound.
“I would like to congratulate MCC on another stellar year of production at Ramu in a year which saw 374 different mining projects around the world impacted by the Covid-19 pandemic,” stated Anthony Milewski, Chairman of Conic. Mr. Milewski continued, “MCC has once again shown that it’s one of the top mining operators in the world and Conic is fortunate to have MCC as a partner now for more than 13 years.”