TIDMTMC
20 August 2009
Operational Update - Berong Nickel
Toledo Mining Corporation plc ("Toledo" or the "Company") (AIM:TMC)
advises that a third shipment of ore was shipped to BHP Billiton's
("BHP") Yabulu refinery from the Berong mine on Palawan island,
Philippines, on 11 August 2009. The shipment contained 48,108 tonnes
of ore at 1.5% nickel (approximately 481 tonnes contained nickel on a
dry basis) and 30% iron.
Due to severe bad weather caused by tropical storms, the transhipment
of ore from barge to the ship moored offshore was severely delayed.
BHP has lodged a claim for demurrage, the amount of which is being
contested by Berong Nickel Corporation ("Berong") which declared
force majeure during the ship loading. Even taking account of BHP's
claim, the shipment is cash positive to Berong.
Berong has now completed the shipment of stockpile material which
meets the BHP specification. Approximately 150,000 wet metric tonnes
of ore remain on the stockpile at Berong for which Toledo continues
to seek customers.
The contract between Berong and BHP calls for a minimum shipment of
300,000 wet metric tonnes per annum to the Yabulu refinery of
Queensland Nickel. So far this year, only approximately half of this
contracted amount has been taken
It was reported in July that BHP has reached agreement in principle
to sell the Yabulu refinery to Professor Clive Palmer. The
consequences of this development for the timing of future shipments
from Berong to Yabulu are under discussion.
Ends.
Reg Eccles, Chairman, Toledo Mining Corporation +44 (0) 20 7514 1480
plc
Richard Greenfield, Ambrian Partners Limited +44 (0) 20 7634 4700
Alex Buck, BuckBias Limited +44 (0) 7932 740 452
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