Operational Update - Berong Nickel
Toledo Mining Corporation plc ("Toledo" or the "Company") (AIM:TMC) advises that a third shipment of ore was shipped to BHP Billiton's ("BHP") Yabulu refinery from the Berong mine on Palawan island, Philippines, on 11 August 2009. The shipment contained 48,108 tonnes of ore at 1.5% nickel (approximately 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. Approximately 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 approximately 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.
Reg Eccles, Chairman, Toledo Mining Corporation 44 (0) 20 7514 1480 plc Richard Greenfield, Ambrian Partners Limited 44 (0) 20 7634 4700 Alex Buck, BuckBias Limited 44 (0) 7932 740 452
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