Yulho to Promote Nickel Concentration Project in Tanzania... "Expecting Annual Sales of 50 Billion Won Upon Completion"

Yulho is advancing a nickel beneficiation project in Tanzania, Africa. Before securing local mining rights, the plan is to procure low-grade nickel, process it through beneficiation, and export it to Korea.

On the 1st, Yulho announced that it is in discussions to build a nickel beneficiation plant with an annual production capacity of 30,000 tons in Nachingwea, Lindi Region, Tanzania. The beneficiation plant project aims to increase the grade of nickel ore, which averages 3-5%, to over 15%. The plant is scheduled to be completed in the first half of next year, targeting annual sales of 50 billion KRW.

A company official stated, "In Tanzania, which has the world's largest undeveloped nickel sulfide deposits, only nickel ore with a grade above 5% is exported, while low-grade ore around 3% is not circulated. We plan to build a nickel beneficiation plant and promote exports ahead of securing mining rights."

Yulho's subsidiary, Yulho Tanzania, has established a joint venture (LOK Mining Company) with local partners and is developing four mines near Nachingwea in Lindi Region. The total area of the nickel mines is approximately 7,488 hectares. Three rounds of exploration have been completed, and detailed exploration is being prepared. Full-scale drilling will begin next month, with mining rights expected to be secured by next year.

The construction of the beneficiation plant was pursued to secure a distribution network for exports before nickel mining, and to enhance credibility through gradual sales expansion. The need for local beneficiation facilities, whether producing ore directly from their own mines or purchasing mined ore, was also cited as a reason for the investment.

The official added, "Through multiple discussions with domestic and international professional organizations about the project's feasibility and direction, we confirmed the potential of the nickel beneficiation business. Securing our own beneficiation plant can reduce massive logistics costs and improve competitiveness." He continued, "It can also maximize relative added value. In Australia, there is a successful model where mined ore is purchased, beneficiated, and then exported."

Yulho presented its nickel mining and beneficiation project at the 'Korea-Tanzania Critical Minerals Roadshow' held on the 25th and 26th of last month, organized by the Tanzanian Embassy. The company reported that the presentation received significant interest and positive responses from the Tanzanian Ministry of Minerals and mining-related companies.

Nickel is a raw material used in cathode materials, which are key components of secondary batteries. Cathode materials account for 47% of battery costs, and demand is increasing for high-nickel cathode materials containing about 80% or more nickel. Yulho supplies concentrates to domestic high-nickel producers' smelters.

According to mining industry media Mining.com, Fitch Solutions forecasts that nickel prices will gradually rise from 2024, reaching $21,500 by 2028 and $26,000 by 2033.