EFA throws support behind NiWest

19th September 2023 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – Integrated battery metals developer Alliance Nickel has received a letter of support from Export Finance Australia (EFA) to provide potential financing for the NiWest nickel/cobalt project, in Western Australia.

Subject to EFA board approval, the letter of support could be converted into a binding agreement following due diligence, sufficient lender support and other customary financing terms, Alliance said on Tuesday.

The next step in securing project finance would be the completion of the definitive feasibility study for NiWest, as well as further due diligence work.

Alliance last year updated the capital cost estimates for the NiWest project to just over A$1.26-billion, with the 2018 prefeasibility study estimating that the project could produce 456 000 t of nickel and 31 400 t of cobalt over a 27-year mine life, based on a nameplate processing capacity of 2.4-million tonnes a year.

Alliance earlier this year signed a binding offtake agreement with automotive maker Stellantis over the NiWest project, covering up to 170 000 t of nickel sulphate and 12 000 t of cobalt sulphate over an initial five-year offtake term, amounting to 40% of the future yearly forecast from NiWest.