[Ferro-Alloys.com] 

Ardea consortium taking shape for WA nickel-cobalt play

Ardea Resources is charging towards a definitive feasibility study (DFS) for its Goongarrie Hub near Menzies in Western Australia, as it continues to finalise a big-name project consortium in its bid to become a globally-significant nickel-cobalt producer.

The consortium, which includes Sumitomo Metal Mining (SMM) and Mitsubishi Corporation (MC), is expected to complete due diligence by the end of February ahead of negotiating final binding agreements by the end of the first quarter. It will continue without Mitsui & Co., as the Japanese company has decided to exit the venture.

Ardea says an agreed timeline extension for discussion on the DFS scope has allowed important site visits and technical meetings with SMM and MC, resulting in significant progress being made on critical workstreams. It says the consortium has now distilled the DFS into six key work packages – process plant, non-process infrastructure, approvals, geology, mining and hydrogeology – with package contents being put out to tender ahead of budgeting.

In July this year, Ardea released a prefeasibility study (PFS) on Goongarrie Hub, which is part of its wider Kalgoorlie nickel project (KNP), quoting numbers that raised eyebrows across the market. The study suggests the $3.1 billion building cost can be paid back in just 3.1 years through a bulging EBITDA of $800 million a year – a number that will be maintained for 40 years.

The cash will come from a projected production of about 30,000 tonnes of nickel and 2000 tonnes of cobalt a year.

As nickel-sulphide ore resources dwindle, processing of lateritic nickel ores is becoming more necessary, with many investors recognising them as the future of the nickel industry.

• [Editor:邢亚敏]