Mincor set to make a splash in ‘third wave for nickel’ at Kambalda

The company on the cusp of joining the ranks of Australia’s nickel producers has described the reawakening of Kambalda’s nickel mines as the “third wave for nickel mining” in the Goldfields town (reports The West Australian).
16th October 2020
Resources Rising Stars

The company on the cusp of joining the ranks of Australia’s nickel producers has described the reawakening of Kambalda’s nickel mines as the “third wave for nickel mining” in the Goldfields town (reports The West Australian).

IGO and Andrew Forrest-backed Mincor Resources has a spring in its step after last month revealing plans for its nickel mines came roaring to life this year.

That came with a final investment decision that would have the first nickel production late next year, and an initial five-year mine life with potential to be extended.

It will create more than 200 long-term jobs with a focus on a residential workforce and local procurement.

Speaking at the opening day of the 2020 Diggers and Dealers Mining Forum in Kalgoorlie-Boulder yesterday, Mincor boss David Southam said the company was at the forefront of breathing new life into Kambalda.

“We are really looking to get Kambalda going,” he said.

“We’re at the forefront of what we called the third wave of mining nickel in Kambalda.

“We talk about Karratha, we talk about Kalgoorlie — we want to be the kings of Kambalda.”

Mincor had to put its mines into care and maintenance in 2016 during a sustained downturn in the nickel price.

But with a new off-take agreement under its belt, a greenfields discovery and an improved nickel price, the cashed-up emerging miner has manoeuvred itself into a commanding position.

Last month’s final investment decision came after Mincor secured a “highly competitive” $55 million project debt facility with international banks BNP Paribas and Societe Generale. That was on top of existing cash reserves of more than $100m after a $60m capital raising in June.

With funding advanced and the board giving the project the nod, Mincor has issued a notice to proceed to its Kalgoorlie-Boulder-based underground mining contractor Pit N Portal.

Commercial mine development and surface construction were earlier tipped to be in full swing during this quarter.

With more than half of future production coming from Cassini, a discovery hole drilled at Cassini North in August means there could be further to come from the deposit.

Mr Southam said Mincor viewed the Cassini deposit as an “emerging nickel camp”.

“Twelve months ago we were talking about Cassini, that we think there is the potential for a repeat structure,” he said.

“After doing some remodelling of the basalt we recorded our discovery hole of 2.5m at 6.6 per cent (nickel).”

Mincor also plans to inject new life into its Durkin and Long mines where there is the potential for upside on 1.1km of untested ground between the two deposits.

Mr Southam reflected on Mincor’s significant progress during the past year in which the company’s market capitalisation grew from about $100m to about $385m.

“We’ve moved from being shovel-ready to actually operating the shovel,” he said.

“We are a premier location, we’ve got rare high grades, which in nickel is very hard to find.

“We’re fully funded, our strategy is very simple. We’ve got a tier one partner and we think we’re in the right timing.

“Nickel is the new gold. We’re the metal of the future, we’re the metal that actually shows the world’s becoming a better place.”

 

Image: The West Australian

Subscribe to the RRS Weekly Wrap

© 2020 Resources Rising Stars All Rights Reserved