Shanghai Shanshan to Explore Nickel-cobalt Mine in Australia

BEIJING, June 3 -- China's leading garment maker Shanghai Shanshan Co., Ltd. announces today that it inked a framework agreement with Heron Resources Limited on May 28, 2009 to jointly operate a nickel-cobalt mine in Australia.

    Shanshan could singly invest in the mine project with money and technologies to build a plant and infrastructure and process the ores to nickel-cobalt concentrate. If the plant could annually process no less than 1 million tons of laterite nickel-cobalt ores to concentrates that contain no less than 50 million tons of metal and keep operating at 50% or higher of design capacity for 30 consecutive days, Shanshan can get 70% interests in the project.

    Heron holds 30% interests in the project by investing the entire mining right of Yerilla Nickel-cobalt Mine. The two sides will build a co-operating joint venture for the project.

    Shanshan takes charge of the sales of all nickel-cobalt concentrates produced in the project and will process deeply in China. The Chinese company will start the feasibility study on ore processing and should complete in 24 months after signing the framework agreement.

    Moreover, Shanshan plans to buy 12,046,940 shares of Heron, or 4.99% of its capital stock. It also holds an option to acquire a 5% stake in Heron twice.

    (Source: www.shihua.com.cn)