Ardea Resources, a battery metals explorer, has struck a significant cooperation deal with Japanese giants Sumitomo Metal Mining and Mitsubishi Corporation to develop the Kalgoorlie nickel project – Goongarrie Hub in Western Australia. The joint venture, named Kalgoorlie Nickel, will be a 50:50 partnership with Ardea.
This agreement entails the funding and execution of a definitive feasibility study (DFS) for the project, which is slated to commence in the first half of 2024. The Consortium, alongside Ardea and Kalgoorlie Nickel, will finance and oversee this study, with Sumitomo Metal Mining and Mitsubishi Corporation contributing technical and commercial expertise.
The Consortium will provide all necessary funding for the DFS, amounting to around $98.5 million over approximately 18 months. Upon completion of the DFS phase, the Consortium is poised to acquire a 35% stake in Kalgoorlie Nickel, with an option to increase ownership to 50% upon a positive final investment decision (FID).
If the DFS yields positive results, Ardea and the Consortium will equally share further development expenses leading up to the FID stage. The agreement underscores Ardea’s strategic move to partner with established industry players to maximize the potential of the Kalgoorlie nickel project.
Federal Resources Minister Madeleine King has highlighted the project’s significance in bolstering Australia’s resource trade relationship with Japan. She emphasized the project’s alignment with stringent environmental, social, and governance (ESG) standards, positioning it as a model for sustainable resource development.
With the transaction expected to be finalized by the end of the third quarter of 2024, the collaboration sets the stage for the Kalgoorlie nickel project to emerge as a major nickel-cobalt producer in Australia, contributing to both the local and global energy transition efforts.
