Colombia Seeks Better Terms from BHP Nickel Mine

Reuters Africa reported that Colombia plans to renegotiate royalty payments from BHP Billiton’s (ASX:BHP,NYSE:BHP,LSE:BLT) Cerro Matoso nickel mine so that they are more favorable toward the country.

As quoted in the market news:

Located near the town of Montelibano in northern Colombia, the Cerro Matoso mine has a lateritic nickel ore deposit and a low-cost ferro nickel smelter. The smelter and refinery are integrated with an open-cut mine.

The government says that it expects Cerro Matoso output at 51,100 tons in 2012. The mine produced 37,810 tons of nickel last year, 23.5 percent lower than the 49,443 tons produced in 2010 as one of the furnaces was off, the government said.

Click here to read the full Reuters Africa report.