Oriel Resources plc is perfectly positioned to supply the stainless steel market in Russia, Asia and Europe for the next 25 years from its planned chromite and nickel mines in Kazakhstan and the operational ferrochrome smelter in north western Russia. Oriel’s three main projects are the Voskhod chromite project (100% owned by Oriel) and the Shevchenko nickel project (90% owned by Oriel, 10% Muzbel) and the Tikhvin Ferrochrome smelter plant (100% owned by Oriel).

 

All three projects received positive feasibility studies indicating quick payback and strong cash flow for the company. The chrome and nickel deposits are in a mining friendly area, close to infrastructure, with a skilled workforce available. They are strategically located between the main steel markets of Russia, China and Europe. Both projects benefit from independent and reliable local road, rail and power infrastructure.

 

These two projects will supply key ingredients to the global stainless steel market, which has been growing by 5-6% per year.

 

Underground development on the Voskhod project commenced during Q3 2006. The Feasibility Study at Shevchenko was completed in Q1 2006 and has extended mine life to 47-years based on an expanded resource. Variable and fixed operating costs of US$1.91 per pound of nickel have been estimated over the first ten years of production, placing Shevchenko as one of the industry’s lowest cost ferronickel operations.

 

Oriel's management has a very successful record in sourcing, financing and placing mines into production in Asia and elsewhere.