Poseidon buys Norilsk Nickel’s Black Swan project
PERTH (miningweekly.com) – Australian nickel miner Poseidon has struck a deal with Russian major Norilsk Nickel to buy the Black Swan nickel operation, in Western Australia, for an undisclosed amount.
The Black Swan project consists of a 2.15-million-tonne-a-year plant and an openpit mine estimated to contain about 185 800 t of nickel.
Poseidon told shareholders on Monday that the company would have the option to either recommission the plant in its current location to process ore from its own Windarra operation, or to move the plant and relocate it to the Windarra site, creating considerable cost savings.
The ASX-listed nickel miner pointed out that the current location had the benefit of being connected to the power grid and a nearby workforce in Kalgoorlie. However, this benefit had to be weighed against the cost of trucking ore from the Windarra site to the current Black Swan plant.
“The acquisition of Black Swan represents a strong opportunity in line with our strategy and complements our objective of quickly getting the Mt Windarra project back into production at a much lower capital cost than previously announced, and more than doubles our nickel resource base,” said Poseidon MD and CEO David Singleton.
Poseidon has been working to refurbish the Mt Windara mine after revealing it was investigating options for toll treating the mine’s ore. It was hoped that the mine could produce between 350 000 t/y and 700 000 t/y, over the first two years of production.
Singleton said that the company was still negotiating the sale of ore from Windarra to another processing plant, with sales anticipated late this calendar year.
While the acquisition price for the Black Swan project remains confidential, Singleton said that the company would not need to raise additional cash to fund the acquisition.
The nickel miner has paid a 10% deposit on the project, with the remainder of the asking price due when the conditions precedent had been satisfied.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation