Silkroad Nickel’s subsidiary, PT Teknik Alum Service has entered into a new long-term mining exploration agreement with Sinohydro Corporation Limited and PT. Sepco II Indo.
The contract value, based on the fixed price per tonne agreed under the agreement and the 6 million tonnes of nickel ore to be produced by Sinohydro Corporation and PT. Sepco II, is estimated to be in excess of AU$90 million.
Under the terms of the contract, Silkroad Nickel is responsible for completing all land acquisition related matters, applying and obtaining all necessary licenses and permits, and providing Sinohydro Corporation Limited and PT. Sepco II Indo with the necessary data of the mining area.
Both Sinohydro Corporation and PT. Sepco II are responsible for excavating and transporting the overburden, providing mining equipment, technical assistance, personnel and support needed to produce the nickel ore, maintaining the roads to be used for transporting the nickel ore and transporting the nickel ore.
Mr Hong Kah Ing, Executive Director and Chief Executive Officer of Silkroad Nickel was pleased to strike the agreement with PowerChina.
“PowerChina is amongst the world’s top five largest contractors and engineering companies,” says Mr Hong Kah Ing.
“This Agreement gives us the impetus required to ramp up our production levels to fulfil the requirements of our offtake contracts and start the exploration of new areas within our concession.”
Sinohydro is owned by Power Construction Corporation of China (PowerChina), a wholly state-owned company of the People’s Republic of China. PowerChina is an integrated construction group and its principal businesses include energy, power, construction equipment and engineering and operation management. PT. Sepco is a company in Indonesia, owned by PowerChina.