IVK Investika Di

RNS Number:0574G
Toledo Mining Corporation PLC
22 October 2007

22 October 2007

                         Toledo Mining Corporation plc
                       ("Toledo Mining" or the "Company")

           Letter of Intent to Enter into Nickel Pig Iron Production



The Directors of Toledo Mining Corporation plc (AIM:TMC) advise that the
Company, through a partly owned subsidiary, has entered into a Letter of Intent
(LOI) with two Chinese companies to form a Joint Venture (JV) to investigate the
acquisition of steel making facilities to produce nickel pig iron and stainless
steel within China.

An existing integrated steel plant in Guangxi Province has been identified as a
possible target for the JV. The JV partners intend to perform detailed due
diligence over the next six months before making a decision on acquiring the
assets. The steel plant is approximately three years old, well maintained,
environmentally responsible, and currently produces hot rolled steel bars and
billets for the domestic Chinese market. The assets comprise three blast
furnaces (the largest being 380 cubic meters in capacity), sintering machines,
residual heat power plant, oxygen plant, railway access, wharf access and land.

It is proposed to convert part or all of the steel plant to the production of
nickel pig iron, and eventually stainless steel. The technology to convert the
plant would be provided by one of the JV partners. It is estimated that the
plant will require approximately 1.2 million tonnes of nickel laterite ore
feedstock per year. It is the intention of Toledo Mining to enter into a long
term contract to supply all the plant's feedstock requirements on prevailing
commercial terms.

The proposed market for nickel pig iron and stainless steel remains firm, and
the pricing structure more attractive than simply supplying nickel laterite ore
to the market.

Mr George Bujtor, CEO of Toledo Mining, commented, "The initial entry into China
allows us to readily assess the technology, cost structure and environmental
performance of the integrated steel operations. Based on the knowledge gained,
it is the intention of Toledo Mining to build a similar steel plant in the
Philippines.  The proposed JV satisfies the Company's strategy of adding value
to its large laterite resource base in the Philippines."

George Bujtor, CEO of Toledo Mining is a member of the Australasian Institute of
Mining and Metallurgy and is a qualified person that has reviewed and approved
the technical information contained in this announcement.



                                     -Ends-

For further enquiries:

Annie Richards, Toledo Mining Corporation plc          Tel: +44 (0) 20 7514 1480
Candice Sgroi, Pelham Public Relations                 Tel: +44 (0) 20 7743 6376
Hugh Oram, Nabarro Wells & Co. Limited                 Tel: +44 (0) 20 7710 7400








                      This information is provided by RNS
            The company news service from the London Stock Exchange
END

MSCDGMMGKLKGNZM

Investika Di (LSE:IVK)
Gráfica de Acción Histórica
De May 2024 a Jun 2024

Investika Di (LSE:IVK)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024