Nickel sulfide exploration company Ardea Resources Ltd said on Wednesday it had signed a non-binding agreement with a Japanese consortium to conduct a feasibility assessment of its Kalgoorlie nickel project, Goongarrie Hub, in Western Australia.
Ardea said the consortium includes Sumitomo Metal Mining, Mitsubishi Corp and Mitsui Industries. The agreement provides the framework for the consortium and Ardea to negotiate a binding agreement to complete the final feasibility study of the Goongarrie Hub for the Kalgoorlie Nickel project.
The agreement also provides that the two companies will make final investment decisions and jointly obtain project development funding, making the project a significant producer of nickel and cobalt in the lithium-ion battery industry.
The move comes as the Japanese government pushes to invest in mines for minerals used in batteries and strengthens alliances with resource-rich countries such as Australia, underscoring the global rush to decarbonise.
Shares of Ardea are up nearly 54 percent, on track for their best trading day ever.
In a separate exchange filing, Ardea projected the total capital cost of the Kalgoorlie Nickel Project's Goongarrie Hub at A $3.18 billion ($2.13 billion) and said the mining optimisation study projected that over a 40-plus year period, The project will produce about 30,000 tons of nickel and 2,000 tons of cobalt per year.
Remarks: Kalgoorlie Nickel Project (KNP) Goongarrie Hub is a mining project located in the Central West region of Western Australia. The project is a joint venture between the Australian companies BHP and Rio Tinto.
