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Craig Nolan
Ardea Resources’ Kalgoorlie nickel project (KNP) has received a shout-out in the Japan-US Critical Minerals Joint Fact Sheet, a call-to-action to shore up critical mineral supply chains between the two powerful nations and other Western markets.
The company’s nickel-cobalt project, about 70 kilometres north of the city of Kalgoorlie-Boulder in Western Australia, comprises its bulk-scale KNP – Goongarrie Hub and hosts a mammoth 854 million tonnes grading 0.71 per cent nickel and 0.045 per cent cobalt for a whopping 6.1 million tonnes of contained nickel and 386,000 tonnes of cobalt.
Management believes the project is of global significance. That recognition has now been further enhanced by its inclusion on the Joint Fact Sheet list of projects, potentially bolstering the supply of key critical minerals to the West.
The push to spotlight a shortlist of top-tier projects stems from last week’s summit between US President Donald Trump and Japanese Prime Minister Sanae Takaichi, where both leaders agreed to strengthen cooperation on critical minerals.
‘Ardea is pleased to see the global significance of the Kalgoorlie nickel project continuing to be acknowledged.’
Ardea Resources managing director Andrew Penkethman
The fact sheet was subsequently released by Japan’s Ministry of Economy, Trade and Industry (METI) in conjunction with the Ministry of Foreign Affairs of Japan and both governments outlined plans to help meet their desired critical mineral objectives.
Ardea Resources managing director Andrew Penkethman said: “Ardea is pleased to see the global significance of the Kalgoorlie nickel project continuing to be acknowledged and welcomes the inclusion of the project in the Japan–U.S. Critical Minerals Joint Fact Sheet.”
Penkethman said the company looked forward to continued collaboration among Australia, Japan and the US, moving the Goongarrie Hub towards development and locking in a secure supply chain among the three nations.
The company has already taken steps down the international cooperation pathway with its KNP project, bolting down a binding agreement in 2024 with a Japanese consortium consisting of Sumitomo Metal Mining and Mitsubishi Corporation.
Under the terms of the deal, the consortium has agreed to fund 100 per cent of a definitive feasibility study (DFS), setting a budget of $98.5 million to complete the work. At the conclusion of the DFS, the Japanese investors will secure a 35 per cent stake in the project. That right can be upped to 50 per cent ownership if a positive final investment decision (FID) is made to build, commission and operate a more than 30,000-tonne-per-annum nickel operation.
Ardea recently revealed that the DFS remains on track for completion in the first half of this year, with several design changes to be implemented from the company’s preliminary feasibility study (PFS) released in July 2023.
Those changes include the removal of an atmospheric leach circuit, to be replaced with an expanded high-pressure-acid-leach (HPAL) circuit.
Additionally, the company now plans to sell the nickel product as a mixed sulphide precipitate (MSP), which should improve payability compared to the previously planned mixed hydroxide precipitate. The MSP is considered a suitable feedstock for a wide range of nickel smelters and refineries worldwide.
The company has also received several non-binding, conditional letters of support for the project from renowned financial groups, including Export Finance Australia (EFA) and the Export-Import Bank of the United States (EXIM).
The combined conditional and non-binding support for the KNP project is up to A$1 billion. EFA has indicated it could potentially stump up $500 million in development funding, with EXIM providing a letter of interest for an account-busting US$350 million (A$500 million).
Ardea’s KNP-Goongarrie Hub is a blockbuster of a project in almost every sense and may play a massive role in supplying some of the critical minerals coveted by Western nations and industry.
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