Overview

Mincor has embarked on an exciting new chapter as it closes-in on the restart of nickel sulphide mining in the Kambalda District of Western Australia in early 2022, following a Final Investment Decision on the development of its Kambalda Nickel Operations (KNO) in September 2020.

Kambalda is one of the world’s great nickel provinces. Since its discovery by WMC Resources Limited in 1966, it has produced over 51 million tonnes of ore grading 3.1% Ni for 1.6Mt of nickel metal.

Mincor played a leading role in Kambalda’s post-2001 revival. The Company produced some 180,000 tonnes of nickel metal in ore over a successful 14-year period as a profitable, dividend-paying mining company before placing operations on care and maintenance in 2016 at a time of historically low nickel prices.

The Company has a dominant ground position in the Kambalda District with tenements covering more than 300km2 and a large, high quality Mineral Resource inventory totalling 5.0Mt at 3.8% Ni for 187,800 tonnes of contained nickel including Ore Reserves of 2.3Mt at 2.8% Ni for 65,400 tonnes of contained nickel.

Mincor’s nickel portfolio includes the full spectrum of assets ranging from the first greenfields discovery in Kambalda over 20 years (Cassini) to existing mines on care and maintenance, to brownfields extensions and exploration targets.

A Definitive Feasibility Study (DFS) completed in March 2020 for the Company’s integrated mine restart plan confirmed an economically robust project with low start-up capital requirements, a pre-tax IRR of 98% and low unit cash costs. The DFS outlined an initial 5-year mining operation delivering 71kt of nickel-in-ore and 5kt of copper-in-ore.

The restart plan is underpinned by an Ore Tolling and Offtake Purchase Agreement with BHP Nickel West to utilise the nearby Kambalda Nickel Concentrator and will sell nickel concentrate to BHP Nickel West.

In addition to these significant milestones, Mincor has successfully raised $95.6 million in equity capital and secured a $55 million project finance facility with a Tier-1 banking syndicated as the foundation for a Final Investment Decision (FID) announced on 17 September 2020.

Read the full DFS announcement here.