Mincor Resources’ board members have given the approval for the development of the Kambalda nickel project in Western Australia, breaking a four-year “hiatus” at the operation.
The development approval comes after Mincor secured agreements with two Tier-1 international banks, BNP Paribas and Société Générale, for a $55m loan facility to support the development of the nickel project.
With all the required permitting in place, Mincor now anticipates mobilisation to ramp up quickly over the coming weeks at the nickel project.
Mincor noted that the surface construction is expected to reach “full swing” during the December quarter this year.
The company is targeting ore production for the next corresponding period (December quarter of 2021).
Mincor managing director David Southam said: “We are now on the cusp of realising our vision to resume profitable and sustainable nickel sulphide mining in the Kambalda district, and to do so in an environmentally responsible and ethical manner that will see this great nickel province return to the forefront of Class-1 nickel production globally.
“We are doing this at a particularly exciting time in the nickel market as a new wave of nickel demand emerges, driven by the electrification of the global transport fleet and the rapid growth of the lithium-ion battery industry globally.
“These trends have only accelerated in recent months, spurred on by post-Covid Government stimulus programmes, and I expect that our production restart timetable will be well aligned with current market trends.”
In March last year, BHP Nickel West extended its offtake partnership with Mincor Resources, marking a key step in the latter’s strategy to restart its nickel mining operations in Kambalda, Western Australia.