Toledo to Complete BHP Nickel Supply Talks by October (Update2)
Filed under: Mineral - Nickel, Operator - Toledo Mining, Region 07 - Cebu
June 20 (Bloomberg) — Toledo Mining Corp. said it will conclude talks with BHP Billiton Ltd., the world’s largest mining company, on supplying nickel ore from its Berong project in the Philippines by the end of the third quarter.
Toledo Mining, based in London, wants to get an agreement to sell as much as 50 percent of production to BHP Billiton’s plant in Townsville, Australia, Chief Executive Officer George Bujtor said in a telephone interview today from Manila.
“We’re still in negotiations with them,” Bujtor said. Toledo Mining will be able to double its 2008 production target “easily” to 3 million metric tons of ore to meet demand from BHP Billiton and its existing Chinese customers, he said. The company’s production this year will be about 900,000 tons, he said.
An agreement would guarantee long-term purchases of Toledo Mining’s production, which is now sold on a shipment-by-shipment basis. There have been no talks that would lead to an equity ownership with BHP Billiton, Bujtor said.
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