Sumitomo Metal Mining Decides Nickel Capacity Expansion by 60%

Sumitomo Metal Mining (SMM) announced on Tuesday the firm expands electrolytic nickel output capacity by 60%. The current capacity of SMM’s nickel plant in Niihama City, Ehime, Japan is 41,000 tonnes per year. SMM plans to raise the capacity to 65,000 tonnes in the second quarter of 2013 with total capex of 14 billion yen. As a result of the expansion, output of electrolytic cobalt, by-product of electrolytic nickel, will also increase to 4,500 tonnes per year from present 2,000 tonnes.

This capacity expansion is scheduled along with the timing of operation start of Taganito in Philippines. Taganito project targets to make nickel cobalt mixed sulfide with around 60% nickel from low grade oxide ore by HPAL (high pressure acid leach) process. The production will start in 2013 with initial yearly output at 30,000 tonnes of nickel. The intermediate material produced in Taganito will be consumed at Niihama plant.

SMM has already launched another HPAL plant of Coral Bay Nickel project in Philippines. Intermediate nickel material is currently produced at 24,000 tonnes per year in Coral Bay. Intermediate material of Taganito and Coral Bay will account for more than 80% of Niihama plant’s material consumption in future.