Poseidon Nickel Ltd (ASX:POS) in China talks to fund restart of mine production

Company News

Junior explorer Poseidon Nickel Ltd (ASX:POS) is in talks with a number of Chinese investors to fund the restart of mine production within two years.

Bloomberg reports that the company is seeking between $50 and $100 million for its Mt Windarra project in Western Australia, which will supply stainless steel makers in China.

CEO David Singleton says the company is talking to strategic investors and off-take parties in the country about the investment required for the miner to go to production.

Poseidon plans to build a plant at Mt Windarra to turn ore into concentrates and is strongly considering using equipment sourced in China.

Mr Singleton says the plant would have the capacity to process 800,000 metric tons of ore a year.

The company, chaired by Fortescue Metals Group chief Andrew Forrest, suspended restoration work on Mt Windarra in October 2008 because of the global financial crisis.

Work has restarted at the site and is 20% complete.

For the 12 months to June 30, 2009, Poseidon Nickel reported a profit of $7.44 million.