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The cash is projected to come from production modelled at about 30,000 tonnes of nickel and 2000 tonnes of cobalt a year from the open-cut mine that will exploit the shallow, flat-lying nickel laterite orebody with a strip ratio of just 1.5:1. The impressive PFS led to the Japanese consortium agreeing to fully fund the project’s DFS.
Despite the recent downturn in nickel prices, Ardea says the PFS defined direct cash costs after cobalt by-products of US$5763 (AU$8841) per tonne nickel in mixed hydroxide precipitate (MHP) over the life of the mine, which provides for a significant cash margin even at the current prices.
The Australian Government has shown its support for the struggling nickel sector by adding the metal to the list of critical minerals, giving companies access to $4 billion worth of funding aimed at promoting minerals considered vital to the world’s clean-energy transition.
Federal Minister for Resources Madeleine King said the project is a great example of collaboration between Australia and Japan and the enduring partnership between the two countries.
“This is a globally significant nickel-cobalt project that shows how Australian nickel projects can succeed economically, while also meeting the world’s best environment, social and governance standards,” King said. “The road to net zero runs through Australia’s resources sector.”
WA Mines Minister David Michael said the State Government also welcomed the commitment from the Japanese consortium, describing nickel as a “key commodity in products essential for global decarbonisation efforts”.
Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au
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