On Target To Commence Production In 2022
Mincor Resources NL (ASX: MCR) has officially opened the Cassini Nickel Mine, the cornerstone of its Kambalda Nickel Operations in Western Australia, marking a key milestone in its journey to commence nickel production early next year.
Cassini, which is located just south of the historic mining town of Kambalda, was officially opened by WA’s Minister for Mines and Petroleum, Bill Johnston, at a ceremony held on site and attended by dignitaries including the Traditional Owners, shareholders, strategic partners, bankers, investors and media.
As part of the official opening ceremony, Minister Johnston, Mincor’s Chairman Brett Lambert and Managing Director David Southam unveiled a plaque naming the decline at Cassini the “The Woodall Decline”, in recognition of the legendary Australian geologist, Dr Roy Woodall AO, whose pioneering work led to the discovery of the Kambalda nickel province.
Dr Woodall, who was widely regarded as the “father of Kambalda”, passed away in February this year.
Mincor embarked on a strategy to restart nickel production in 2019 and has achieved numerous milestones in the past 18 months including securing a processing and sales solution via a landmark agreement with the world’s largest mining company, BHP Nickel West, raising $95.6 million in equity capital and securing a $55.0 million project finance facility.
First nickel concentrate is on track to be delivered in Q1 CY2022, ushering in an exciting new era of nickel mining in Kambalda and, in the process, transforming Mincor into a new-generation high-grade nickel sulphide producer ideally positioned to capitalise on what is widely expected to be a new era of demand for the metal driven by the renewable energy and electric vehicle sectors.
As outlined in the March 2020 Definitive Feasibility Study, production is forecast to ramp-up to ~16,000tpa of nickel-in-concentrate, with ore from two underground mines (Cassini and the Northern Operations, comprising the Durkin North and Long mines) to be processed at BHP’s Kambalda Nickel Concentrator, with the resulting nickel concentrate sold to BHP. Mincor expects that its nickel concentrate will ultimately be processed into nickel sulphate for use in the rapidly growing global EV battery industry.
The development of the Kambalda Nickel Operations involves a pre-production capital investment of $68 million and is expected to create more than 200 long-term direct jobs during operations with more than 95 per cent of this expenditure being spent in Western Australia.
“This is a tremendous milestone for Mincor, for our employees, shareholders, suppliers, strategic partners and other key stakeholders, and for the Kambalda nickel district more broadly. The official opening of the first new nickel sulphide mine in the region in over a decade is a proud moment, and one that signals the start of a new chapter for this world-renowned nickel district,” Mincor’s Managing Director, David Southam, said.
“We are also deeply honoured that the Woodall family has allowed us to celebrate the legacy of Dr Roy Woodall AO, the ‘father of Kambalda’, by naming the Cassini Decline the ‘Woodall Decline’. This is a wonderful symbolic connection between Kambalda’s rich past and its exciting future as a key supplier to the booming battery metals sector, fuelled by the burgeoning electric-vehicle industry worldwide.”