Operations

Location of Cunico operations in the Balkan Region, Europe

Following a series of successful acquisitions over the past four years, Cunico plans to produce approximately 23,000 tons of nickel in 2008. Feni Industries in Kavadarci was acquired in 2005 and management was able to triple production output from 5,000 tons in 2004 to over 15,000 tons in 2007. In addition, following a successful privatisation process in Kosovo, the Ferronikeli complex began operating again in 2007. The planned nickel output of Ferronikeli is approximately 7,000 tons in 2008. The Cunico group employs approximately 2,350 people in the Balkan region.

Each of the group’s production plants is fed with ore from nearby mines that are owned by the group. The ore is mixed with purchased raw materials (such as nickel ore, coal and anthracite) to produce the final product.

The Feni nickel plant in Kavadarci is supplied with nickel ore of varying concentrations from deposits at the group’s mines in the Balkans, as well as imports of third party ore from Indonesia, Albania, New Caledonia and Turkey.

The Ferronikeli nickel plant in Kosovo is supplied with nickel ore from the group’s mines in the country, as well as imports of third party ore from Albania, and supplemented with other ore to optimise blends and production.