The approval, granted by the Solomon Islands Ministry of Mines, Energy and Rural Electrification, allows the company to sell and export nickel ore produced from the Kolosori project
Australian nickel explorer and developer Pacific Nickel Mines has secured an Export Permit for its 80% owned Kolosori Nickel project, located on Isabel Island in the Solomon Islands.
The Solomon Islands Ministry of Mines, Energy and Rural Electrification granted the Export Permit approval that is valid for three years.
With the approval, the company can sell and export nickel ore produced from the Kolosori project.
Pacific Nickel said that the approval will support securing funding facilities for further development of the project.
The company has already initiated discussions with barging and mining contractors and is currently finalising finance documents with Glencore International.
Pacific Nickel CEO Geoff Hiller said: “The granting of approval for an Export Permit for the Kolosori Nickel Project is a major achievement for the Company and is significant as we advance works for the development of the project.
“The company has worked closely with the local community, the Provincial Government and the Minerals Board to satisfy regulatory requirements for the granting of this approval.
“The recent completion of a Definitive Feasibility Study, which confirms the strong economic viability of the Project, supports the confidence shown by various levels of government in the development of this project.”
Pacific Nickel aims to mobilise the mining contractor and complete the haul road to the mining area when the Direct Shipping Ore (DSO) loadout wharf is built.
The company is planning to ramp up the Kolosori Nickel project to full production this year.
Last month, the company announced the completion of the definitive feasibility study (DFS) for the Kolosori project and plans to advance the project to the execution stage.
The DFS estimated that the project would require $21.5m to produce up to 1.5 million tonnes a year of DSO over an operating mine life of three years.
Hiller added: “The company will now proceed with the finalisation of financing facilities being offered by Glencore with the aim of drawing down development funds at the earliest opportunity.
“The company believes that the project holds relatively low technical risk and that capital payback will be achieved in under 12 months.
“The company remains committed to developing the Kolosori Nickel Project for the benefit of all stakeholders.
“It will be a high-quality nickel operation and will operate in accordance with the highest possible environmental standards for the overall benefit of the Solomon Islands and its people.”