Joint venture partners TVI Pacific and Mindoro Resources announce that the first shipment of high-iron/low nickel direct shipping ore (DSO) has been completed from the Agata project in northern Mindanao.
Upon final exercise of a 25% option in the Agata project, Mindoro will hold a 40% direct interest in Agata Mining Ventures Inc, a joint venture company in which TVI Resource Development (Phils) (TVIRD) also holds a 60% interest.
A total of 54,181 wet metric tonnes (wmt) of limonite high-iron/low nickel ore containing 0.70% nickel and 49% iron left the port of Payong-Payong in Agusan del Norte, Mindanao, on October 19. In accordance with an offtake arrangement between AMVI and Tewoo Hoperay (Singapore) Pte Ltd, AMVI expects to receive gross revenue of US$890,000 for this shipment.
“We congratulate operator TVIRD on their efficiency in loading our first high-iron/low nickel DSO shipment in just seven days,” says Mindoro’s CEO Penny Gould. “Mindoro’s transition towards becoming a cash flow generating company, through its interest in AMVI, hails a major milestone in Mindoro’s strategy to rebuild value for its shareholders.”
Production remains steady at the Agata project and remaining inventory to date is approximately 26,669 wmt of limonite high-iron/low nickel ore with nickel and iron content levels between 0.7% and 0.9% and 48% and 49%, respectively. It is anticipated that future shipments of approximately 55,000 wmt high-iron/low nickel DSO will continue approximately every three to four weeks with shipping rates expected to accelerate rapidly to 2.5 million wmt per year in 2015.
The Agata project is located in Agusan del Norte province, within the Surigao mining region on the island of Mindanao. The Surigao region is a major nickel producing region providing ore to processing plants in Australia, China, Korea and Japan. The region has hosted between 13 and 15 DSO operations since 2011 and exported 27 million wmt in 2013.