Photo by: Panoramic Resources
Name of the Project
Savannah nickel project.
Location
Western Australia.
Project Owner/s
Panoramic Resources.
Project Description
The mine plan envisages average production of 9 402 t/y of nickel, 5 046 t/y of copper and 714 t/y of cobalt in concentrate over more than 12 years, with the majority of ore sourced from the Savannah North orebody.
The mining methods used in the life-of-mine plan are in line with the previous operation, as a top-down, longhole open stoping mining method using paste fill is implemented. This mechanised, nonentry method has proven to be a safe, productive mining method at Savannah.
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of A$844-million.
Capital Expenditure
Not stated.
Planned Start/End Date
Panoramic reopened the Savannah mine in 2021, but the company has struggled amid low nickel prices.
Latest Developments
Panoramic Resources went into voluntary administration on December 14, 2023, having failed to secure funding or partnerships for the company or its Savannah nickel project.
On January 9, 2024, the administrators of Panoramic announced the suspension of operations at the project, affecting 140 workers who will be made redundant.
At the time of Panoramic going into administration, it was the intention of administrators FTI Consulting to keep the Savannah project operational. While operations have continued, including a shipment of 10 000 t of nickel concentrate, nickel prices have continued to fall.
“ . . . after consultation with major creditors and key suppliers, it is apparent that the prospect of achieving a near-term turnaround of operations and finances is low,” FTI Consulting senior MD Daniel Woodhouse has stated.
The administrators, with assistance from Treadstone Resource Partners, will continue a dual track strategy to sell or recapitalise the Panoramic business. This process will continue regardless of the Savannah nickel project’s operating status, and will aim to realise the full value of the defined orebodies, extensive infrastructure and exploration potential of the project.
Key Contracts, Suppliers and Consultants
Entech (updated mine plan); and Braminco (underground mining contract).
Contact Details for Project Information
Panoramic Resources, tel +61 8 6266 8600 or email info@panres.com.