Australias Allegiance starts stocking nickel ore

Australias Allegiance starts stocking nickel ore

Australia’s Allegiance Mining N.L. said on Tuesday it had started stockpiling ore from its Avebury nickel mine ahead of commissioning a new mill in the 2007 September quarter.

Allegiance has executed a $1.3 billion sales agreement and partnership with China’s Jinchuan Nickel Group.

The mine, located in Tasmania, holds a reserve of 4.4 million tonnes of ore, grading 1.16 percent nickel, or a contained metal resource of 51,000 tonnes of nickel after processing, according to the company.

World demand for nickel, running at about 1.3 million tonnes a year, has pushed nickel prices to record highs above $37,000 a tonne this week.

Allegiance shares were up more than 6 percent to A$0.70 at 0225 GMT, bucking a downtrend in the wider Australian market , which was down about 0.2 percent. ($1=A$1.27)

Source: Reuters

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