PERTH (miningweekly.com) – Nickel miner Western Areas has reported a slight increase in production in the September quarter, compared with the previous quarter.
Nickel production for the three months under review increased to 5 805 t, up from the 5 423 t produced in the previous quarter, with total nickel-in-concentrate production down slightly from 5 433 t to 5 250 t in the same period as nickel grades declined.
Nickel sales for the quarter were also down slightly from the June quarter, from 5 890 t to 5 051 t.
Western Areas MD Dan Lougher said on Wednesday that the consistent performance reported in the September quarter was in line with production and cost guidance across the operations, which combined with increased nickel prices, provided strong operational cashflow.
“It is also very exciting to see the construction of the Odysseus mine advancing as planned, underpinning the development of our next long-life nickel sulphide operation.”
A definitive feasibility study into the Cosmos Odysseus project confirmed that the project would produce on average 13 000 t/y of nickel in concentrate over an initial ten-year mine life, based on an ore reserve of 8.1-million tonnes, grading 2% nickel for 164 000 t of nickel.
The study estimated a pre-production capital cost of A$299-million, including contingency with the pre-tax net present value estimated at A$418-million and the internal rate of return at 28%, based on a nickel price of $7.50/lb.