Mirabela Nickel (MBN)

Shares / Stock Code

MBN

Stock Exchange / Sharemarket

ax

Mirabela Nickel (MBN) is involved in nickel production and exploration in Bahia, Brazil. Mirabela Nickel Ltd owns 100% of the world-class Santa Rita nickel sulphide mine and is listed on the Australian and Toronto stock exchanges (ASX: MBN and TSX: MNB). MBN was listed on the Australian stockmarket on 16 July, 2004.

Following the commencement of owner-operated mining at Santa Rita, MBN produced the first nickel concentrate, marking another milestone after five years since the discovery of the deposit. Measured and Indicated resources that are amenable to open-pit mining are 130.3Mt, grading 0.60% Ni. The global resource stands at 150.1Mt at 0.60% Ni. The Southern Deeps exploration will increase the overall resource. Commissioning of the processing plant is continuing and production will build to 18,500tpa.

Santa Rita is the largest discovery of a greenfield sulphide nickel deposit in the world over the past decade. It is expected to be the second largest open-pit nickel sulphide mine in the world, with a mine life expected to exceed 19 years and a cost of production around the 50th percentile of world-wide nickel producers, making the project world class with underground expansion potential. MBN finalised financing in the most difficult of markets, reflecting the strong economics of the project.

Production of 27,000tpa Ni and a mine life of 19+ years will make MBN one of the larger independent nickel sulphide producers in the world. Only a handful of producers can source this amount of production from one open-cut mine. Santa Rita has the low capital and operating costs normally associated with Ni sulphides, but a size normally associated with Ni laterite projects. The project in Bahia is located close to excellent ports, power and transport infrastructure.

For the first five years of production, the company has offtake agreements with Votorantim Metals and Norilsk Nickel. Each party has 50% of the offtake. Company listed on ASX on 16 July, 2004.