PERTH (miningweekly.com) – Diversified metals miner Independence Group is expected to take a decision on the long-term future of its Nova nickel product within the next few weeks.
Speaking at the Paydirt Nickel conference, in Perth, Independence MD and CEO Peter Bradford noted that the company is running a parallel process to investigate a new tender process for nickel product from the Nova operation, along with a prefeasibility study (PFS) into potential downstream processing to create a battery grade nickel sulphate product.
Bradford noted that the concentrate offtake tender process was launched in the last three months, and presented the potential for Independence to negotiate improved commercial offtake terms, given that the Nova nickel product now had an established reputation.
In parallel, Independence is undertaking a PFS on a potential nickel sulphate operation, which is slated for completion in the second quarter of next year.
Bradford told Mining Weekly Online that the downstream processing plant would have a capacity of between 27 000 t/y to 30 000 t/y, making full use of the Nova nickel concentrate production, recovering more than 97% of the nickel in concentrate.
He added that given the capital intensity of a downstream operation, Independence was likely to take on a project partner in the downstream project.
“We want to be closer to the electric vehicle battery market, but the value that we will deliver from this will be incremental. The greater lick of value that we would be able to deliver is by doing more upstream activity. So a way for us to have our cake and eat it, is to find a partner to share the capital cost burden, who can bring the technical expertise to run a downstream chemical processing facility, allowing us to focus on upstream opportunities through further exploration and discovery.”
Independence has set aside A$66-million for exploration in the 2020 financial year, with 40% of this budget to be spent on brownfield exploration and the remainder on greenfield exploration, with Independence hoping to discover a deposit similar in size to the Nova project within a 100-km radius, allowing the company to make use of existing infrastructure.