Solway Investment Group’s attempts to secure its own reserve base of lateritic ore for Pobugski Ferronickel Plant eventually lead to the strategic decision of developing an independent ferronickel plant in Indonesia.
Solway has subsequently acquired a number of exploration areas in Indonesia via its regional subsidiary company. The most advanced of these areas is Maba which is located on Halmahera Island.
A leading EPCM company completed the Prefeasibility Study of the project. The project’s BFS is estimated to be completed in 2014. Additional 25 to 30 months will be required upon completion of BFS for permits, engineering design and construction.
The project’s currently estimated resources amount to over 100 million tons of ore with 1.7% nickel grade and a favorable SiO2/MgO ratio, a high-quality large deposit with excellent up-side potential.
Two other concessions of smaller size are at the advanced stage of exploration in Sulawesi Island and negotiations are being held with the potential off-takers.
The project’s key features include:
• Planned yearly production capacity of 38,000 tons of nickel which is contained in ferronickel (FeNi);
• Nickel recovery rate of 90% which is in line with the industry average;
• The application of the RKEF technology which is widely established throughout the industry;
• Additional HPAL process for ore with a grade lower than cut-off;
• A wholly-owned 320MW high-efficiency CFB power generation fueled by thermal coal from Aquila's own concession in West Papua Province allowing low energy costs;
• Lower cash costs per ton of nickel than the industry average – less than $7,000 per ton;
• Experienced FeNi personnel are readily available in Indonesia;
• Solway management team with a long track record of expertise in the industry.