Name of the Project
Kambalda nickel restart project.

Location
The Kambalda district of Western Australia.

Project Owner/s
Mincor Resources.

Project Description
A definitive feasibility study has proposed the development of a mining operation pro­duc­ing 63 000 t of recovered nickel-in-concentrate with relatively low capital intensity.

The initial five-year operation is based on 2.5-million tonnes of ore grading 2.9% nickel for 71 000 t of contained nickel-in-ore and 5 000 t of copper-in-ore.

The Mincor nickel operations are expected to comprise the Cassini and Northern operations (Long and Durkin North) at the start, with the Miitel mine contributing towards the latter half of the project life.

The flagship Cassini mine, a greenfield discovery by Mincor, is forecast to contribute 56% of the total nickel-in-concentrate production over the initial life of the project.

The mine plan involves underground extraction of the Cassini deposit through a boxcut and decline, mining 1.2-million tonnes of ore at an average nickel grade of 3.3% over five years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 7% discount rate, of $305-million and an internal rate of return of 98%, with a payback of 12 months.

Capital Expenditure
Preproduction capital is estimated at $68-million, mainly associated with mine development and related infrastructure.

Planned Start/End Date
First nickel concentrate is scheduled in the June 2022 quarter, instead of late in the March 2022 quarter as previously guided.

Latest Developments
Mincor Resources is gearing up to start production at its Kambalda operations in May 2022, after reaching an agreement with the Nickel West division of major BHP to update the terms of an ore tolling and offtake purchase agreement (OTCPA).

Under the amendments, future sales will be based on imputed nickel-in-concentrate production through the implementation of a grade-recovery curve applied to the nickel ore delivered to BHP’s Kambalda nickel concentrator.

The ore delivered to the concentrator by the end of May will be converted to imputed concentrate production, resulting in first cash flow from concentrate sales being generated by Mincor in June this year.

Mincor will continue to ramp up ore production during the commissioning phase, as the company looks to increase nickel concentrate production rates towards the end of the September quarter.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Mincor Resources, tel +61 8 9476 7200 or email mincor@mincor.com.au.