PERTH (miningweekly.com) – The economics of the Nova nickel project, in Western Australia, have been further improved following an optimisation study.

ASX-listed Independence Group reported on Monday that the project’s net present value had increased by 36% compared with the 2014 definitive feasibility study, while C1 costs have been reduced by 27% from $1.66/lb to $1.21/lb.

“Independence has unlocked significant value from the Nova project, taking an already solid project and making it even better,” said MD Peter Bradford.

“The study has shown that Nova is an extremely robust project that will be able to weather the commodity price cycle. This value has come through leveraging off the current accelerated mining rates, improving the mining sequencing and schedule, and capturing the operating cost savings that have been delivered on the project.”

Life-of-mine all-in sustaining coasts have also decreased by some 21%, from $2.32/lb nickel-in-concentrate to $1.83/lb.

Bradford said in a conference call on Monday that with the reduction in both C1 and all-in sustaining costs, the Nova project has been firmly cemented as one of the lowest-cost nickel projects in the world.

The projected capital expenditure for the $443-million project remains unchanged, however, Bradford pointed out that Independence had been able to absorb significant changes to the scope of the work to achieve the value enhancements, and to improve optionality for future value enhancements.

At the end of November, some 42% of the capital spend at Nova had been completed.

At full production, the Nova project was expected to deliver about 26 000 t/y of nickel, 11 500 t/y of copper and 850 t/y of cobalt over a ten-year mine life. The mine was expected to deliver its first copper concentrate by December next year.

“Potential remains to further enhance the project’s net present value by achieving higher mining and processing rates than the 1.5-million tonne a year nameplate capacity at the mine, and we will investigate that further during the early operational period of the project,” Bradford said on Monday.