Facts
Ownership
100% controlled
Status
Development
Location
The Philippines
Mindoro Nickel, located on the island of Mindoro in the Philippines, was discovered and developed by Intex and today is considered one of the Philippine government’s priority mineral projects. The approximately 100 km2 concession area (9,720 ha) is located about 30 km from the coast in the central part of Mindoro Island. Extensive nickel (Ni)-laterite mineralization was formed by the accumulation of nickel and cobalt (Co) in the tropical soils of the island through intensive chemical weathering of ultramafic source rocks in late Tertiary to recent times.
Environmental and Social Perspectives
Mindoro Nickel is located on the island of Mindoro in the central part of the Philippines. Unlike most nickel laterite deposits in the Philippines, the Mindoro deposit was not recognized before the company’s early exploration showed that laterite in a land area of over 10,000 ha in the central parts of the island hosted a significant nickel mineralization.
Industrial development
The discovery of a large nickel deposit in Mindoro Island has brought about a new and unexpected opportunity for development of the Island’s economy, which so far has been dependent on traditional farming and fishing, and where powerful typhoons constantly cause destruction of seasonal crops and damage to local infrastructure, including roads and bridges. The island also suffers from frequent extensive flooding, which cause further aggravation of the already vulnerable agro-based economy.
While the development of a large nickel operation can bring much needed boost to the local economy, it also generates concern among the predominantly rural population, regarding the consequences for their traditional trades. There is no historic mining tradition in Mindoro, unlike in most other parts of the Philippines, and a large new project therefore causes concern. The company is sensitive to these concerns and is conducting a thorough information and education campaign to explain about the operation and is arranging public meetings to listen to local concerns and wishes.
The project will provide direct employment opportunities for over 2,000 people and many more by the multiplier effect. The project will also ultimately provide 110 MW of CO2-free electrical power as a by-product from its acid plant, required for the pressure leach processing of the laterite ore. The basic guiding principle for Intex’s plans is that all land use activities will be temporary and that all land used will be returned in a better and more valuable state after operation than it was before, creating sustainable benefits for the local population.
Indigenous people
While there are no permanent infrastructures or settlements in the license area, it is being used by indigenous Mangyan tribes and about 200 families currently use the 100 km2 license area for their traditional nomadic lifestyle. The company has continuously conducted consultations and established a close relationship with the tribal leaders of these communities. During exploration, Mangyans are employed on an equal basis with other locals, and often in a rotary system, to ensure a maximum of interested people will receive benefits of this engagement.
Community support programs are also provided for the Mangyan communities, including installations for safe drinking water, improved sanitary systems as well as free medical services.
Support programs are required by law and developed in cooperation with the local inhabitants. The initial initiatives have already led to significant reductions in serious diseases among particularly children and old people. The company is also arranging for more children being admitted to schools from elementary through high schools to college grants. In addition, our agro and forest technicians assist individual Mangyan farmers and communities in improved methods for better farming and forest practices.
In the adjacent villages, safe water has now been installed in most households, distributed by gravity from spring sources through a system of connected ferro-cement tanks. Also here are medical services being provided from a small clinic and from a mobile ambulance unit, which can reach more remote locations. The company has also initiated a program for mitigation of the locally excessive damages caused by the widespread flooding in the region.
The future
The nickel project has become a major, environmentally friendly development opportunity to Mindoro because of new technology, which allows naturally occurring laterite soils to be used as a principal source for metals like nickel and cobalt. The project has a very long time line and, when implemented, may exist for well over 50 years.
Experience from operations elsewhere, where the value-added processing is conducted on site, show that substantial amounts of the generated value will be retained locally, through corporate and individual taxes, accompanying business activities, new opportunities, spin offs, employment multipliers and the generally increased living standards this operation will generate for the Provinces of Mindoro island.
The Nickel Deposit
The deposit consists of two principally different laterite types: limonite ore and saprolite ore. Limonite is the reddish, iron-rich soil type that occurs in the uppermost 4-10 meters of the natural soil profile. The limonite is enriched in Ni and Co and can be successfully processed by acid leach technology (HPAL) because of its low magnesium content.
Saprolite ore is the underlying materials, which often contains stones and boulders of the bedrock. It typically has more yellowish color and a rocky appearance. The saprolite often contains not only more Ni and Co than the limonite, but also high magnesium content which makes it better suited for other processing techniques. The saprolite can also be used to neutralize residual acid from the process solutions, whereby additional Ni and Co is added to the pregnant liquor.
Mining
The mining operation will be surface excavations from a predetermined mine block of about 50-60 ha. Projected production rates will require mining of approximately two blocks per year, which will be fully rehabilitated and replanted immediately after mining of each block has been completed. This means that mining will affect an area of approximately 100 -150 ha per year. After mining the terrain will be reshaped and the topsoil returned for immediate replanting. Slopes and loose topsoil will be protected from soil erosion and landslides by so-called coco nets, a bioengineering method of applying coco-fiber mats. After 2-4 years the terrain will be fully revegetated and gradually restored after its temporary use for the mine operation.
The Processing
The process plant design is based on well-proven HPAL technology (“High-Pressure Acid Leach”) - a processing method which has been operated at Moa Bay in Cuba for over 40 years and was also selected by Sumitomo for its Coral Bay Ni-plant in the Philippines and more recently, for the Ambatovy project in Madagascar and the Ramu nickel project in PNG.
The Economics
The Definitive Feasibility Study delivered by Aker Solutions in February 2010 suggests a capital cost of USD 2.455 billion, and an operating cost of USD 2.11 per pound of nickel before credits. After credits for by-products an operating cost of USD 0.56 per pound of nickel is estimated.
Environmental and Social Perspectives
Mindoro Nickel is located on the island of Mindoro in the central part of the Philippines. Unlike most nickel laterite deposits in the Philippines, the Mindoro deposit was not recognized before the company’s early exploration showed that laterite in a land area of over 10,000 ha in the central parts of the island hosted a significant nickel mineralization.
Industrial development
The discovery of a large nickel deposit in Mindoro Island has brought about a new and unexpected opportunity for development of the Island’s economy, which so far has been dependent on traditional farming and fishing, and where powerful typhoons constantly cause destruction of seasonal crops and damage to local infrastructure, including roads and bridges. The island also suffers from frequent extensive flooding, which cause further aggravation of the already vulnerable agro-based economy.
While the development of a large nickel operation can bring much needed boost to the local economy, it also generates concern among the predominantly rural population, regarding the consequences for their traditional trades. There is no historic mining tradition in Mindoro, unlike in most other parts of the Philippines, and a large new project therefore causes concern. The company is sensitive to these concerns and is conducting a thorough information and education campaign to explain about the operation and is arranging public meetings to listen to local concerns and wishes.
The project will provide direct employment opportunities for over 2,000 people and many more by the multiplier effect. The project will also ultimately provide 110 MW of CO2-free electrical power as a by-product from its acid plant, required for the pressure leach processing of the laterite ore. The basic guiding principle for Intex’s plans is that all land use activities will be temporary and that all land used will be returned in a better and more valuable state after operation than it was before, creating sustainable benefits for the local population.
Indigenous people
While there are no permanent infrastructures or settlements in the license area, it is being used by indigenous Mangyan tribes and about 200 families currently use the 100 km2 license area for their traditional nomadic lifestyle. The company has continuously conducted consultations and established a close relationship with the tribal leaders of these communities. During exploration, Mangyans are employed on an equal basis with other locals, and often in a rotary system, to ensure a maximum of interested people will receive benefits of this engagement.
Community support programs are also provided for the Mangyan communities, including installations for safe drinking water, improved sanitary systems as well as free medical services.
Support programs are required by law and developed in cooperation with the local inhabitants. The initial initiatives have already led to significant reductions in serious diseases among particularly children and old people. The company is also arranging for more children being admitted to schools from elementary through high schools to college grants. In addition, our agro and forest technicians assist individual Mangyan farmers and communities in improved methods for better farming and forest practices.
In the adjacent villages, safe water has now been installed in most households, distributed by gravity from spring sources through a system of connected ferro-cement tanks. Also here are medical services being provided from a small clinic and from a mobile ambulance unit, which can reach more remote locations. The company has also initiated a program for mitigation of the locally excessive damages caused by the widespread flooding in the region.
The future
The nickel project has become a major, environmentally friendly development opportunity to Mindoro because of new technology, which allows naturally occurring laterite soils to be used as a principal source for metals like nickel and cobalt. The project has a very long time line and, when implemented, may exist for well over 50 years.
Experience from operations elsewhere, where the value-added processing is conducted on site, show that substantial amounts of the generated value will be retained locally, through corporate and individual taxes, accompanying business activities, new opportunities, spin offs, employment multipliers and the generally increased living standards this operation will generate for the Provinces of Mindoro island.
The Nickel Deposit
The deposit consists of two principally different laterite types: limonite ore and saprolite ore. Limonite is the reddish, iron-rich soil type that occurs in the uppermost 4-10 meters of the natural soil profile. The limonite is enriched in Ni and Co and can be successfully processed by acid leach technology (HPAL) because of its low magnesium content.
Saprolite ore is the underlying materials, which often contains stones and boulders of the bedrock. It typically has more yellowish color and a rocky appearance. The saprolite often contains not only more Ni and Co than the limonite, but also high magnesium content which makes it better suited for other processing techniques. The saprolite can also be used to neutralize residual acid from the process solutions, whereby additional Ni and Co is added to the pregnant liquor.
Mining
The mining operation will be surface excavations from a predetermined mine block of about 50-60 ha. Projected production rates will require mining of approximately two blocks per year, which will be fully rehabilitated and replanted immediately after mining of each block has been completed. This means that mining will affect an area of approximately 100 -150 ha per year. After mining the terrain will be reshaped and the topsoil returned for immediate replanting. Slopes and loose topsoil will be protected from soil erosion and landslides by so-called coco nets, a bioengineering method of applying coco-fiber mats. After 2-4 years the terrain will be fully revegetated and gradually restored after its temporary use for the mine operation.
The Processing
The process plant design is based on well-proven HPAL technology (“High-Pressure Acid Leach”) - a processing method which has been operated at Moa Bay in Cuba for over 40 years and was also selected by Sumitomo for its Coral Bay Ni-plant in the Philippines and more recently, for the Ambatovy project in Madagascar and the Ramu nickel project in PNG.
The Economics
The Definitive Feasibility Study delivered by Aker Solutions in February 2010 suggests a capital cost of USD 2.455 billion, and an operating cost of USD 2.11 per pound of nickel before credits. After credits for by-products an operating cost of USD 0.56 per pound of nickel is estimated.
Back to top
