PERTH (miningweekly.com) – ASX-listed Ardea Resources’ A$1.16-billion Kalgoorlie nickel project has been granted Major Project status by the federal government.

The project will produce cobalt/nickel ore that will undergo a process to produce mixed hydroxide precipitate, which is used as raw material in the growing international battery market. 

The project is estimated to host 830-million tonnes of resource, at 0.71% nickel and 0.046% cobalt, for 5.9-million tonnes of contained nickel and 380 000 t of contained cobalt.

Projects awarded Major Project status have access to extra support from the Major Projects Facilitation Agency, including having a single-entry point for Australian government approvals, project support and coordination.

Prime Minister Scott Morrison said declaring Major Project status would bring the operation to life sooner.

“With 1 500 jobs each year for the three-year construction and 500 jobs a year for the 25-year operation, this project is a major project and will get every support possible from my government,” the Prime Minister said.

“It’s projects like this that help build a stronger economy and secure a stronger future for the region and for Western Australia. With the project in its early phases now, declaring it a Major Project will get more tradies on site, and more workers into town sooner.”

Minister for Industry, Energy and Emissions Reduction Angus Taylor said the government was backing local industries which were investing in and supporting technologies to help Australia and the rest of the world meet emissions reduction targets.

“This proposed facility has huge potential to contribute to the growing international demand for lithium-ion battery minerals that will underpin a range of emerging clean energy applications, including electric vehicles and everyday items such as smartphones and laptops,” Taylor said.

“The government recognises the enormous economic growth and job opportunities these projects provide for regional Australia. We have now granted Major Project Status to 12 significant critical minerals projects across Australia which will inject more than A$8.7-billion into our economy and support over 7 500 construction jobs and over 3 800 ongoing jobs.”

Minister for Resources and Water Keith Pitt said granting Major Project status for the Kalgoorlie nickel project was another step forward for Australia playing a major role in the global critical minerals market, which is expected to grow exponentially over the coming decades. 

“This project directly contributes to our Critical Minerals Strategy by increasing the supply of highly sought-after materials for the lithium-ion battery supply chain and has the potential to boost Australia’s sovereign capability,” Pitt said. 

Ardea MD Andrew Penketham has welcomed the announcement, saying the recognition would assist in advancing the project towards development through streamlining the approvals process and providing access to additional sources of potential project funding.

“Globally significant nickel/cobalt projects like the Kalgoorlie nickel project, combined with a benign environmental setting, are a rarity. With the award of Major Project status, Ardea is well placed to provide a significant sustainable and ethical supply chain for the lithium-ion battery sector, from the best resources operating jurisdiction in the world, being Western Australia,” he added.

The federal government this week announced a A$119.6-million investment by the to build an integrated nickel manganese cobalt battery material refinery hub in the Kalgoorlie region – the first facility of its kind anywhere in Australia.

Pure Battery Minerals’ A$399-million Australian precursor Cathode Active Material (pCAM) hub, in partnership with nickel miner Poseidon Nickel, will initially produce 50 000 t/y of pCAM, enough to produce up to one million lithium-ion electric vehicle batteries, and will result in some 380 construction jobs and 175 initial permanent jobs from 2023.