Ardea Resources is progressing its Kalgoorlie Nickel Project with a fully funded Definitive Feasibility Study by Sumitomo Metal Mining and Mitsubishi Corporation, aiming to deliver a long-life, low-cost nickel-cobalt supply from Australia’s largest resource.
- Largest nickel-cobalt mineral resource in Australia at Goongarrie Hub
- DFS fully funded up to A$98.5 million by Japanese consortium
- Project supports a +40 year mine life with low operating costs
- Strong market demand driven by electric vehicles and battery growth
- Exploration upside and ESG commitments underpin long-term value
Strategic Partnership and Project Scale
Ardea Resources Limited (ASX, ARL) is advancing its flagship Kalgoorlie Nickel Project (KNP) with a focus on the Goongarrie Hub, which hosts Australia’s largest nickel-cobalt mineral resource. The Definitive Feasibility Study (DFS) is currently underway and is fully funded by a consortium comprising Sumitomo Metal Mining Co., Ltd and Mitsubishi Corporation. This partnership not only brings deep technical expertise but also financial backing of up to A$98.5 million, positioning the project for a potential 50% ownership stake by the consortium upon a positive final investment decision.
The Goongarrie Hub resource boasts 584 million tonnes at 0.69% nickel and 0.043% cobalt, translating to over 4 million tonnes of contained nickel and 250,000 tonnes of cobalt. Alongside the Kalpini Hub, which remains 100% owned by Ardea, the project portfolio offers a combined resource base that underpins a multi-decade operation with significant growth potential.
Robust Economics and Low-Cost Production
Ardea’s 2023 Pre-Feasibility Study outlined compelling financial metrics, including a post-tax net present value (NPV) of approximately A$5 billion and an internal rate of return (IRR) of 23%. The project is forecast to produce around 30,000 tonnes of nickel and 2,000 tonnes of cobalt annually over a 40-plus year mine life. Operating costs are competitive, with a low C1 cash cost of US$5,763 per tonne of nickel after cobalt credits, supported by premium ore characteristics and efficient mining methods.
The project leverages mature High Pressure Acid Leach (HPAL) technology, a proven process with decades of operational history, particularly through Sumitomo’s experience in the Philippines and Papua New Guinea. This technology, combined with strategic infrastructure such as highway, rail, power, and fibre optic connectivity, enhances the project’s cost competitiveness and reliability.
Market Context and Strategic Importance
Nickel demand is accelerating, driven by the rapid growth of electric vehicles (EVs) and energy storage solutions. With global EV sales up 28% year-to-date in 2025 and battery demand expected to increase sevenfold by 2040, the timing of the KNP’s development aligns well with forecast nickel market deficits. The project’s location in a Tier 1 jurisdiction like Western Australia adds a layer of geopolitical security and supply chain resilience, increasingly valued in critical minerals markets.
Moreover, Ardea is exploring additional value streams, including scandium as a by-product, which has growing industrial applications and supply security concerns. The company’s extensive tenure in the Eastern Goldfields also offers exploration upside for nickel sulphides and rare earth elements, potentially extending the project’s resource base and diversification.
ESG and Community Engagement
Ardea is committed to operating under high environmental, social, and governance (ESG) standards. The project incorporates innovative approaches such as mineralised neutraliser technology to reduce costs and emissions, in-pit tailings storage suited to the semi-arid environment, and waste heat recovery for power generation. The company also emphasizes meaningful engagement with First Nations communities and gender equality within its workforce, reflecting a modern approach to sustainable mining.
With the DFS fully funded and progressing, Ardea is poised to deliver consistent news flow and milestones that will further define the project’s economic and operational profile. The involvement of experienced international partners and government support from Japan’s Ministry of Economy, Trade and Industry underscores the strategic significance of the Kalgoorlie Nickel Project in global battery supply chains.
Bottom Line?
As Ardea’s DFS advances with strong backing and market tailwinds, the Kalgoorlie Nickel Project stands ready to become a cornerstone of Australia’s critical minerals future.
Questions in the middle?
- How will updated DFS results impact project economics and timelines?
- What are the prospects and timelines for the scandium by-product commercialization?
- How might evolving nickel market prices and geopolitical factors influence the final investment decision?