Oriel Resources is in the money

London-based chrome and nickel mining and processing company Oriel Resources has made the initial sale of high carbon ferrochrome (HC FeCr) product from the Tikhvin smelter plant, Russia and has signed a long term off take contract for the purchase of chrome ore product from the Voskhod chrome project, Kazakhstan. Tikhvin’s initial batch of saleable HC FeCr product has successfully been sold at about $1.30/lb, representing Oriel’s first revenue from current working projects. The company recently completed a long term off take contract with Glencore International to market a significant proportion of Voskhod’s annual 900,000 t of beneficiated chromite ore product, commencing in the third quarter of 2008.

Dr Sergey V Kurzin, Executive Chairman: “In addition, we are pleased to report that a number of major international metal traders have confirmed their interest in our high carbon ferrochrome product. These initial ferrochrome sales from Tikhvin are a significant milestone in the company’s development as a vertically integrated supplier to the stainless steel industry. We are also pleased to have Glencore join us as an off taker of our Voskhod chrome ore.”

The Oriel group currently has three projects, namely the Tikhvin smelter project and the Voskhod chrome and Shevchenko nickel projects, both situated in northwest Kazakhstan. Following the results of recent feasibility studies for the Russia and Kazakh-based projects and given the current high demand for chrome and nickel products, the directors are fast-tracking the Voskhod chrome and Tikhvin smelter projects into production while further developing Shevchenko.