NewCo Ferronikeli

Cunico Resources acquired the NewCo Ferronikeli complex in Drenas in April 2006, following the completion of a successful privatisation process.

The complex includes a nickel production plant as well as potentially rich mineral deposits beneath the surrounding landscape. The plant, located in Gllogovac, was in a state of disrepair at the time of our purchase, as a result of bombing during the Kosovo conflict of the late 1990’s and subsequent general neglect. Since its acquisition however, Cunico Resources has been able to refurbish the NewCo Ferronikeli plant and in 2007, it was successfully re-commissioned. Our investments in the plant have now begun to pay off; last year the plant produced over 6000 tons of ferronickel and with the current plant dynamics and projects, this will increase to more than 9,000 tonnes.

The NewCo Ferronikeli plant is a two line plant. It was built in 1984 using largely Soviet technology, but with certain elements such as the electric furnaces, rotary kilns and casting machines, based on Western designs.

Ferronickel production at NewCo Ferronikeli

The nickel ore is supplied to the plant from Cunico Resources’ Chikatovo and Glavitca mines and elsewhere in the region, and from third party sources.

Each process line consists of a rotary kiln, a smelter and an oxygen converter. Ore is delivered to the plant by road or rail.

The laterite oxide Laterite oxides are hard, red, surface soil layers that have been formed by leaching and other processes of strong chemical weathering. They are rich in iron oxides and a variety of other minerals and are a major natural source of nickel. then undergoes specific preparation in hammer crushers. This is followed by homogenization and the blending of the ore with lignite Lignite is a soft brown type of coal, used mostly for burning in power plants. to further prepare it for processing. The blended materials are then placed in the rotary kilns, where reduction and calcinations This is a thermal chemical process applied to mineral ores to bring about specific chemical decomposition or phase transition. take place. From the rotary kilns, the ore is moved into the electric reduction furnaces, where approximately 50% of the sulphur in the iron/nickel alloy is removed. The remaining sulphur is removed from the liquid metal in the oxygen converters, and the iron/nickel alloy is then cast into ferronickel ingots.