Silkroad Nickel Ltd. (“Silkroad” or the “Company”, and together with its subsidiaries, the “Group”) is the first nickel mining company to be listed on the Singapore Exchange. Formerly known as China Bearing (Singapore) Ltd., the Company made its trading debut on the Catalist board of the Singapore Exchange on 30 July 2018, under the stock code “STP”, following the completion of the reverse takeover of the Company by FE Resources Pte. Ltd. on 5 July 2018.
The Group is primarily engaged in the exploration, mining, production and sales of nickel ore. It has been granted a mining business license to carry out nickel ore mining operations at an approximately 1,301 ha mining concession area located in the Morowali Regency, Central Sulawesi, Indonesia (the “Mining Concession Area”).
The Group currently conducts its mining activities in the Mining Concession Area using an open pit mining method, which includes the exploration, planning and clearing of required surface areas, mining, transportation and stockpiling, delivery and barging, as well as reclamation and rehabilitation works. The Group engages third party contractors to undertake the necessary mining and production activities such as the stripping of overburden, excavation, transportation and stockpiling of the nickel ore as well as the maintenance of hauling roads within the Mining Concession Area.
The Company has plans to develop its downstream business, transitioning from its primary nickel mining operations to a fully-integrated nickel producer that subcontracts its nickel mining operations. This will allow Silkroad to change its current business model from operating as a relatively small scale mining operator in an environment of high capital expenditure and relatively low operational efficiency, to being a low-cost nickel producer with high-quality nickel mining assets.