Copy of article Deepdiver referred to in his most recent hc posting.
Historic deal WENDY BAUER 6/06/2008 8:54:00 AM YOUNG’S economy is set for a major boom following an announcement of a major nickel and cobalt mine development between a Melbourne based mining company and two incoming Chinese partners. A joint venture to develop a nickel and cobalt mine at Thuddungra could bring up to 300 jobs to Young shire in the construction phase alone and the vast mining enterprise would be a major long term boost to the region.
Jervois Mining has announced it had entered agreements with China Railway Group and Yunnan Jiaming Technology to advance its Young nickel project, with one Chinese company to invest an initial $45 million in the venture to initially build a pilot plant that is expected to produce 300 tonnes of nickel.
According to Jervois chief executive officer, Duncan Pursell, a second agreement will be formalised in the next 60 to 70 days.
Jervois has exploration leases on 265 kilometres of farming land near Young, over what is considered to be one of Australia’s biggest untapped nickel deposits, which is 32 kilometres in length.
In the three-way arrangement Jervois will offer 70 per cent of its Young nickel deposit to the two incoming partners, nickel miner Yunnan Jiaming Technology and the global engineering and infrastructure group China Railway Group.
Mr Pursell described the partnership as a perfect grouping.
“Yunnan Jiaming Technology has the process, China Railway Group has the money and we have the resources,” he said.
Mr Pursell was in China when the heads of agreement was signed and, accompanied by key members of both Chinese companies, will visit Young within the month.
He said the incoming partners were the third group Jervois had approached to join the mining venture.
Minister for Mineral Resources Ian Macdonald described the announcement as a significant economic benefit to the region.
“It couldn’t have come at a better time considering the tough period the entire region is experiencing as the drought continues,” he said.
“I’m told during the constructions stage alone between 200 and 300 people would be employed, with the completion of the pilot plant scheduled for the third quarter of 2009.”
Mayor of Young Gerry Bailey has welcomed the announcement and cautioned that there were still hurdles to be overcome before any work can proceed.
These included the requirement for a development application to build the pilot plant, as well as access and water issues.
“It will be a real boost, not just for the community of Young, but other areas as well,” he said, “300 jobs is terribly significant.”
Another Jervois spokesman, Brock Thomson said it would be difficult to imagine a better location, and better hosts, for such a significant mining venture than Young.
Mr Pursell said he expected the workforce would be drawn from Grenfell, Young and Cootamundra and expected there would be an office established in Young, as well as another office on site.
“It is exciting for Jervois and exciting for me, it’s just that I will be more excited when the pilot plant is running, and that will happen,” he said.
Comments Historic deal WENDY BAUER 6/06/2008 8:54:00 AM YOUNG’S economy is set for a major boom following an announcement of a major nickel and cobalt mine development between a Melbourne based mining company and two incoming Chinese partners. A joint venture to develop a nickel and cobalt mine at Thuddungra could bring up to 300 jobs to Young shire in the construction phase alone and the vast mining enterprise would be a major long term boost to the region.
Jervois Mining has announced it had entered agreements with China Railway Group and Yunnan Jiaming Technology to advance its Young nickel project, with one Chinese company to invest an initial $45 million in the venture to initially build a pilot plant that is expected to produce 300 tonnes of nickel.
According to Jervois chief executive officer, Duncan Pursell, a second agreement will be formalised in the next 60 to 70 days.
Jervois has exploration leases on 265 kilometres of farming land near Young, over what is considered to be one of Australia’s biggest untapped nickel deposits, which is 32 kilometres in length.
In the three-way arrangement Jervois will offer 70 per cent of its Young nickel deposit to the two incoming partners, nickel miner Yunnan Jiaming Technology and the global engineering and infrastructure group China Railway Group.
Mr Pursell described the partnership as a perfect grouping.
“Yunnan Jiaming Technology has the process, China Railway Group has the money and we have the resources,” he said.
Mr Pursell was in China when the heads of agreement was signed and, accompanied by key members of both Chinese companies, will visit Young within the month.
He said the incoming partners were the third group Jervois had approached to join the mining venture.
Minister for Mineral Resources Ian Macdonald described the announcement as a significant economic benefit to the region.
“It couldn’t have come at a better time considering the tough period the entire region is experiencing as the drought continues,” he said.
“I’m told during the constructions stage alone between 200 and 300 people would be employed, with the completion of the pilot plant scheduled for the third quarter of 2009.”
Mayor of Young Gerry Bailey has welcomed the announcement and cautioned that there were still hurdles to be overcome before any work can proceed.
These included the requirement for a development application to build the pilot plant, as well as access and water issues.
“It will be a real boost, not just for the community of Young, but other areas as well,” he said, “300 jobs is terribly significant.”
Another Jervois spokesman, Brock Thomson said it would be difficult to imagine a better location, and better hosts, for such a significant mining venture than Young.
Mr Pursell said he expected the workforce would be drawn from Grenfell, Young and Cootamundra and expected there would be an office established in Young, as well as another office on site.
“It is exciting for Jervois and exciting for me, it’s just that I will be more excited when the pilot plant is running, and that will happen,” he said.
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