Solway's Fénix mine to produce 25,000t/y ferronickel

Solway Group's Fénix mine in Guatemala is expected to produce 25,000t/y ferronickel following completion of a processing plant.

President Otto Pérez Molina officially opened the plant for the project in El Estor municipality, Izabal department. It is the biggest such plant in Central America and the project is the largest investment ever in the country at US$1.5bn, of which US$551mn has already been spent, according to a government statement.

Solway, based in Cyprus, acquired the property through its takeover of Compañía Guatemalteca de Níquel (CGN) from Toronto-based HudBay Minerals in 2011.

Solway has a 98.2% stake in CGN, with the remaining 1.8% owned by Guatemala's government.

A mining permit for Fénix, a previously operating mine which ceased production in 1980, was granted in April 2013 as part of a license called Niquelgua Montufar II.

Of the forecast ferronickel production, 11% is expected to go to the construction sector, 24% to engineering, 16% to transport and the rest to various other industries.

The mine is expected to generate 1,500 jobs in local communities and 400mn quetzales (US$51.4mn) a year in royalties, the government said.

Fénix has reserves of over 100Mt, according to historic estimates, and offers opportunities for future expansion and mine life extensions, according to the Solway website.

In addition to mining and metals operations, the company has chemicals, cement and real estate divisions and operates in Eastern Europe, Russia, Africa and Asia.