Minmetals to increase activities in Cuba

Minmetals to increase activities in Cuba

China's largest base metals trading company, China Minmetals Corp., announced plans to set up a nickel mining and smelting venture in Cuba, home of the world's third-largest nickel reserves. The $600 million project includes construction of smelting facilities and a power plant. The company is still in the process of deciding whether to set up a joint venture or a wholly owned mining facility. In addition to the abovementioned plan, Minmetals signed last November a memorandum of understanding to start up the Las Camariocas nickel project in Cuba. Minmetals has a 49 percent stake in the Las Camariocas project, which the company hopes will produce 68'000 metric tons of ferro-nickel per annum. China's stainless steel industry consumes more than 10 percent of the world's nickel. The country's nickel demand may grow as much as 27 percent this year, to 190'000 tons, with a further rise to 194'000 tons expected in 2006.