KOSDAQ-listed Yulho announced on the 1st that it is pursuing a nickel SUN KWANG project in Tanzania, Africa. The company plans to secure low-grade nickel before exporting it to Korea, ahead of securing mining rights in the local area.
On that day, Yulho announced that it is in discussions to build a SUN KWANG facility with an annual production capacity of 30,000 tons of nickel in the Nachingwea area of Lindi, Tanzania. This facility is intended to increase the average nickel ore grade from 3-5% to over 15%. It aims to achieve annual sales of 50 billion won after its completion in the first half of next year.
Recently, Yulho's subsidiary Yulho Tanzania has established a joint venture (LOK Mining Company) with a local partner to develop four mines near Nachingwea in Lindi. The total area of the nickel mines is approximately 7,488 hectares. They have completed three explorations and are preparing for detailed exploration. Full-scale drilling is set to begin in May, with plans to secure mining rights by next year.
Yulho explained that this SUN KWANG facility construction was initiated to secure a distribution network for exports ahead of nickel mine operations and to enhance reliability through gradual sales expansion.
A company official said, “After discussing the business performance and the direction of advancement with various domestic and international institutions, we have confirmed the potential of the nickel SUN KWANG project,” and added, “With our own SUN KWANG facility, we can reduce logistics costs significantly and maximize relative added value.”
Yulho also presented its nickel mining and SUN KWANG project at the 'Korea-Tanzania Key Minerals Roadshow' held from the 25th to 26th of last month, organized by the Tanzanian embassy.