Alliance Nickel Pursues A$310 Million Capex Cut with Vat Leach Trials at NiWest
Alliance Nickel has begun vat leach testing on a bulk sample from its NiWest project, targeting a significant reduction in capital costs by replacing heap leaching with a lower-cost atmospheric process. Results are expected by late Q3 2026 and could reshape the project’s economics.
- Vat leach testwork commenced on 2-tonne NiWest ore sample
- Potential A$310 million capex savings mainly from reduced water infrastructure
- Vat leach offers faster kinetics and improved solution distribution
- Testwork completion expected late Q3 2026
- Results will refine Definitive Feasibility Study assumptions
Vat Leach Testing Targets Major Cost Reduction at NiWest
Alliance Nickel Limited (ASX:AXN) has kicked off vat leach testwork on a bulk sample of approximately two tonnes from its flagship NiWest Nickel-Cobalt Project. This testwork forms a core part of the company’s capital cost optimisation program, aiming to replace the heap leach process outlined in the 2024 Definitive Feasibility Study (DFS) with a more economical atmospheric leaching alternative.
The heap leach flowsheet in the DFS carries a hefty capital price tag, with around A$310 million earmarked for water infrastructure alone. Alliance Nickel’s preliminary analysis suggests vat leaching could drastically reduce this requirement by enabling sufficient local water sourcing from the Mt Kilkenny tenement, potentially slashing this major cost component.
Operational and Metallurgical Advantages of Vat Leach
Beyond the capital savings, vat leaching may deliver metallurgical benefits. The process promises improved solution distribution and enhanced leaching kinetics, which could shorten leach cycle times compared to heap leaching. These factors not only improve operational efficiency but also enhance capital deployment, making vat leaching an attractive alternative to the existing flowsheet.
The testwork is currently underway at an overseas facility, with completion expected by late in the third quarter of 2026. Should the results prove positive, Alliance Nickel plans to update and refine the DFS to reflect the new flowsheet and associated cost savings.
Strategic Implications for NiWest Project Development
The NiWest project benefits from existing infrastructure, including roads, rail, and gas pipelines, and is strategically located near Glencore’s Murrin Murrin Operations. The project’s DFS previously confirmed the technical and economic viability of producing Class 1 nickel and cobalt sulphate for the electric vehicle battery market.
Alliance Nickel’s move to explore vat leaching aligns with its broader strategy to optimise capital expenditure and improve project economics amid ongoing funding and strategic partner discussions. This initiative follows recent capital raising efforts and loan extensions designed to support NiWest’s development phase.
Bottom Line?
The vat leach testwork could redefine NiWest’s capital structure, but investors will need to wait until late Q3 2026 for conclusive results that might reshape project economics and timelines.
Questions in the middle?
- Will vat leaching deliver the anticipated A$310 million capex reduction in practice?
- How might improved leaching kinetics affect overall project throughput and timelines?
- What impact will updated feasibility assumptions have on financing and partner interest?
