Key Contract Awarded as Ardea Pushes Forward on Nickel-Cobalt Feasibility

Progress on Kalgoorlie Nickel Project DFS

Ardea Resources Limited has provided a significant update on the Definitive Feasibility Study (DFS) for its Kalgoorlie Nickel Project (KNP) - Goongarrie Hub, marking a key milestone in the development of what is set to be one of Australia’s largest nickel-cobalt operations. The DFS, managed by Ardea’s subsidiary Kalgoorlie Nickel Pty Ltd and backed by a $98.5 million budget, continues to advance with multiple contracts awarded to specialist service providers.

Among the latest developments is the awarding of a $5.4 million contract to Lycopodium, a multinational engineering firm, to deliver the Hydrogen Sulphide Plant package. This contract encompasses the design and capital cost estimation of the plant and associated utilities, including a hydrogen plant and a nitrogen pressure swing adsorption (PSA) system. The hydrogen sulphide produced will be instrumental in precipitating Mixed Sulphide Precipitate (MSP), a high-purity nickel and cobalt intermediate critical for battery-grade materials.

Strategic Partnerships and Funding

The DFS is supported financially and strategically by a consortium comprising Sumitomo Metal Mining Co., Ltd and Mitsubishi Corporation, who bring extensive expertise to the project. This partnership not only provides capital but also technical and operational insights, enhancing the robustness of the feasibility study and the project’s long-term viability.

Ardea’s Managing Director and CEO, Andrew Penkethman, expressed satisfaction with the progress, highlighting the importance of engaging quality contractors like Lycopodium to ensure the DFS meets its objectives. The collaboration aims to position the Goongarrie Hub as a multi-decade, low operating cost producer of nickel and cobalt, metals critical to the global transition to clean energy technologies.

Resource Scale and Market Context

The Kalgoorlie Nickel Project is notable for its scale, hosting the largest nickel-cobalt resource in Australia and ranking among the world’s largest. The Goongarrie Hub alone contains 584 million tonnes of ore with 4.0 million tonnes of contained nickel, while the broader KNP totals 854 million tonnes at 0.71% nickel and 0.045% cobalt, equating to over 6 million tonnes of nickel and nearly 400,000 tonnes of cobalt.

This resource base underpins the project’s potential to supply critical battery minerals amid rising global demand driven by electric vehicle and renewable energy sectors. The DFS outcomes will be pivotal in confirming the economic and technical parameters necessary to advance towards construction and production.

Looking Ahead

With the DFS advancing steadily, the next phases will focus on finalising engineering designs, refining capital and operating cost estimates, and securing necessary approvals. The involvement of experienced partners and contractors bodes well for the project’s timely progression. However, as with all large-scale mining developments, risks remain around permitting, market conditions, and execution.

Investors and industry watchers will be closely monitoring upcoming DFS milestones and contract awards, which will provide clearer insights into the project’s feasibility and timeline to production.