Hanrui Cobalt announced on March 27 that its Fifth Board of Directors' 19th Meeting approved the Proposal on Using Self-Owned and Self-Raised Funds to Increase the Total Investment Amount of the Fundraising Project and Adjust the Internal Investment Structure. According to the announcement, the company has decided to raise the total investment for the 20,000 Metric Tonnes of Nickel Metal Content Oxygen-Enriched Continuous Converting High-Grade Nickel Matte Project from $243,206,900 to $351,097,400, representing an additional investment of $107,890,500, all of which will be funded through the company's self-owned and self-raised funds.
The increase in project investment is primarily attributable to several factors contributing to higher construction costs. First, the complex geological conditions at the project site and the presence of numerous unforeseen factors, making construction more challenging than initially anticipated; Second, the extended project construction period, which led to increased expenses for civil works, supporting facilities, and equipment installation; Third, rising overseas logistics and labor costs; And fourth, the company's optimization of the project construction plan, which correspondingly increased the procurement costs for certain equipment.
Edited by Cassie Li, lixiangying@mysteel.com
