FQM Australia Nickel project is 100% owned by First Quantum. The project is located in Ravensthorpe, Western Australia, approximately 550 kilometres southeast of Perth. Its three nickel-laterite deposits are estimated to contain sufficient reserves and resources to support a mine life of more than 30 years. The project has undergone modification to several areas since its acquisition and is now ramping up to steady-state operations.
| Acquired: |
February 2010 |
| Operation: |
- Open pit mine using conventional drill and blast, load and haul system
- Hydrometallurgical process plant using proven technology
|
| Average annual production (est.): |
- 39,000 tonnes for the first 5 years
- 28,000 tonnes over the life of the mine
|
| Capital investment: |
- Acquisition cost of $340 million
- Modification cost of approximately $200 million
|
| Cash cost (est.): |
$7.00 per pound of nickel, at current market prices for sulphur |
| Mine life (est.): |
More than 30 years |
| Workforce (est.): |
500 employees |
Project Status
Ravensthorpe has completed 12 months of modification and construction including the re-building of two crushing plants and changes to the crushing, conveying, stockpile and reclaims areas. The plant is performing well and ramping up as planned towards steady-state operations expected before the end of 2011. First production of nickel contained in mixed hydroxide was achieved on October 4, 2011. The re-constructed plants are consistently achieving design throughputs and both Atmospheric Leach and Pressure Acid Leach plants have been successfully brought on line.
History
Mining in Ravensthorpe predates the current nickel mine, with gold discoveries dating back to 1898. The town experienced a downturn after World War I but copper mining continued until the 1970s.
The project's previous owner, BHP Billiton, commenced a feasibility study in 2002 for opening a nickel and cobalt mine and processing plant. The project was approved in 2004 and construction commenced shortly afterward. The plant was officially opened in 2008 and production was expected to total 50,000 tonnes of nickel per year. In January 2009, BHP Billiton announced that it was suspending production indefinitely due to the reduction in nickel prices caused by the global economic crisis. In December 2009, First Quantum entered into a binding agreement with BHP Billiton to acquire the project and the transaction was completed on February 10, 2010.
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To learn more, please see the Annual Information Form, dated March 31, 2011.