SMM3, 26 Mar: recently, the final feasibility study carried out in Kambalda's nickel comprehensive restart plan, (DFS) has confirmed the potential to produce 63000 tons of nickel in concentrate over a five-year period. Mincor Resources said the project would require A $68 million in capital investment, while the total maintenance cost of the mine would be A $4.47 per pound. The expected price of nickel is A $10.20 per pound, the net present value of the project will be A $305 million, the internal rate of return will be 98%, and the profit before interest, tax, depreciation and amortisation will be A $585 million.
The final feasibility study showed that the first five years of operation were based on 2.5 million tons of ore, with a 2.9 per cent grade classification of nickel in 71000 tons of nickel ore and 5000 tons of copper ore, respectively.
Mincor's nickel operations are initially expected to include Cassini and northern operations, while the Miitel mine will play a role in the second half of the project's life, with the flagship project Cassini accounting for 56 per cent of total nickel production in the concentrate at the beginning of the project. Mincor said the final feasibility study paved the way for a final investment decision at the beginning of the third quarter, which would lead to nickel production in the first batch of concentrates in the second half of 2021.
MD David Southam said that just seven months after signing ore tolls and off-take agreements with BHP, a positive final feasibility study had been delivered in the integrated nickel restart programme, which was a good result for the company. This provides a clear blueprint for Mincor's nickel production in (Kambalda), Cambalda. The project is based on a comprehensive mining and production plan with relatively low capital intensity, low projected operating costs and attractive financial returns. Importantly, the capital expenditure and operating costs in the final feasibility study are based on the tender contract rates provided by the mining contractor.
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