The Russian exploration firm Amur Minerals (AIM: AMC) announced on Wednesday that its license application for its Kun-Manie project has reached its final stage.
Details such as ownership structure, financing history and exploration activity on the Kun-Manie nickel reserve are requested by the Prime Minister’s office as part of the completion of the license application. The company also said that such requirements are necessary so that the company could finally commence its drilling at the aforementioned mining site.
Although Amur Mineral’s exploration license is four days away from expiration, the looming deadline would not affect the company’s operations.
Failure to obtain license before the year ends does not mean any harm for the company, as it has established its rights under the Russian Subsoils Law, making them eligible for continued operations.
Amur Minerals Corporation also said that it would remain resolute towards obtaining the final production license alongside continued adherence to local and mining international rules.
Amur’s Chief Executive Officer Robin Young said in a statement that the entire company remains optimistic of a positive result. He also added that Amur is appreciative of the Russian government’s professionalism towards its license application.
Obtaining green light from the government for the Kun-Manie Reserve would allow Amur to start its drilling and other production-related operations, which, in turn, would benefit its shareholders.
Investors and market players are also eager about the outcome of the said application as Amur is eyed as one the nascent companies that could help in the development of Russia’s mining industry, specifically the Far Eastern region.
Industry experts also believe that Amur’s inclusion in the global mining stage would help alleviate the problems brought about by the much-feared nickel supply deficit that is set to begin in the first quarter of 2015.
The deficit has become a global concern when Indonesia exited the world nickel commerce to localize its own nickel ore processing and production.
Indonesia was the world’s top nickel ore supplier to the world prior to its exit. Amongst its clients are the highly industrialized, steel-dependent countries such as Japan and China. China, the largest consumer of ore in the world, has been utilizing Indonesia’s high-quality ore for years as ingredient to its nickel pig iron (NPI), a low-grade ferronickel used as a cheaper alternative to pure nickel for producing stainless steel.
The Philippines, the second-largest ore supplier, has become the default ringleader of the nickel supply stage upon the Southeast Asian nickel ore giant’s decision to make its prohibition irrevocable.
With this, suppliers have been forced to purchase lower-grade ores from various producers in New Caledonia, Australia, Canada, and Russia.
Amur Mineral’s shares are up 21.2 percent at 12 pence on the London Metal Exchange (LME). This was 19.7 percent increase from its Dec. 19, 2014 share price 1.5 percent at 9.75 pence.
Amur Minerals remains the nickel sectors’ biggest riser as of Wednesday morning, Dec. 24 2014.
Nickel has been the best-performing base metal in 2014, and industry experts predict that this trend would most likely to continue, especially if titanium, palladium, and tin remain weak in the subsequent year.
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