PERTH (miningweekly.com) – First nickel concentrate from the Kambalda operation, in Western Australia, will be delivered to diversified miner BHP’s Nickel West during the second quarter of 2022, ASX-listed Mincor Resources said.

Mincor on Thursday said that it had issued Nickel West with a start notice, signifying the "imminent commencement" of nickel concentrate production and providing a clear pathway to first concentrate sales in the June quarter of next year.

“The issuing of the start notice to BHP Nickel West is another fantastic milestone for Mincor, our shareholders, our people and the Kambalda community. It signifies the imminent commencement of nickel concentrate production and formally triggers our offtake agreement with BHP Nickel West,” said Mincor MD David Southam.

“This is an exciting period for Mincor, as we prepare for the restart of high-grade, high-quality nickel from Kambalda, destined for the rapidly evolving clean energy economy. We have been very pleased with the progress BHP has been making as they prepare the Kambalda nickel concentrator for restart.”

Supporting the start of production and the issuing of the start notice, ramp-up activities have continued to gather pace at both Cassini and the Northern operations, the company said on Thursday.

Mincor’s development programme remained largely on track through the September quarter, however, a step-change in activity scheduled from mid-September/early October 2021 has not met the pre-Covid forecasts, resulting in the company electing to delay the start notice to BHP until now. As a result, first nickel concentrate is now scheduled in the June 2022 quarter, instead of late in the March 2022 quarter as previously guided.

“Our ramp-up programme has not been immune to the current challenges facing the Western Australian mining sector, particularly against the backdrop of what has become an unprecedented tight labour market, exacerbated by Covid-19. Our original development schedule, which was created in a pre-Covid environment, envisaged a ramp-up of activity and skilled blue collar labour supply mid-September and into early October.

“This ramp-up has not eventuated to the extent planned, prompting us to take the proactive step of updating our development plans with first nickel concentrate now schedueled for the June 2022 quarter. We have been working closely with our mining partner, Pit N Portal, to counteract the labour shortages, and have implemented a number of retention and recruitment strategies that are already paying dividends.

“The company remains extremely well funded to deliver the project following our recent capital raising, and we are confident that our strong partnership approach with Pit N Portal will ultimately set the company up for success as we move towards first revenue in the June 2022 quarter,” said Southam.

A previously completed definitive feasibility study into the Kambalda restart has estimated that the project will require a capital investment of A$68-million to produce 63 000 t of nickel-in-concentrate over a five year mine life.