Vale Pulls Out of Kalgoorlie Nickel Project

21 May 2009 (Last Updated May 21st, 2009 18:30)

Brazil-based Vale has withdrawn from its joint feasibility study with Heron Resources for the Kalgoorlie Nickel Project (KNP), located in the Kalgoorlie Goldfield in Western Australia. Vale’s withdrawal gives Heron 100% ownership of KNP along with the technical information generated fr

Brazil-based Vale has withdrawn from its joint feasibility study with Heron Resources for the Kalgoorlie Nickel Project (KNP), located in the Kalgoorlie Goldfield in Western Australia.

Vale’s withdrawal gives Heron 100% ownership of KNP along with the technical information generated from the project since 2005.

An approximate $34.5m has already been spent on the project and Heron is not required to reimburse Vale for any of this amount.

Vale has given a 60-day notice period terminating its earn-in agreement for KNP.

Heron said that it will use its in-house project team to optimise the current pre-feasibility study (PFS) by Vale and look for a new firm for the development of the project after the study.

The PFS optimisation will include revision of the pit optimisations and resource estimates with inclusion of further deposits that have not previously been looked at.

By staff writer