DEMAND for nickel has increased on the back of the growing electric vehicle (EV) industry, and BHP is now pushing forward at its Nickel West operations in Western Australia.

Nickel West has made significant progress in FY2019 on its transition to become a leading supplier to the battery materials market – from selling zero nickel to the batter market in 2015 to selling more than 75pc of its production to global battery material suppliers this year.

BHP’s operational review for the September quarter showed production on site increased by one per cent to 22kt, reflecting higher volumes at the Kalgoorlie smelter following the fire in September last year.

The company has commenced construction of a nickel sulphate plant at the Kwinana Nickel Refinery, with first production expected in the first half of 2020.

While major maintenance shutdowns of the refinery and smelter are scheduled during the December 2019 quarter, stage one of the refinery project is expected to produce up to 100kpta of nickel sulphate, just in time for the expected jump in demand in mid-2020.

The company has its sights on reducing bottlenecks at its Mt Keith concentrator and Kalgoorlie smelter as well as the Kwinana refinery.

Green and brownfield exploration

The company is investing in new greenfield exploration programs in WA and continuing nickel mine development in the northern Goldfields.

BHP has secured a new tenement package called Seahorse, which consists of 26 tenements along a strike length of 350km over an area of about 13,000sqkm – approximately 10 times larger than its current tenement holding at Agnew Wiluna Belt.

The Seahorse belt has direct access to rail and road routes to Nickel West, is around 450km from the Kalgoorlie smelter and is near the Transline Railway corridor.

Brownfields exploration projects are underway around the Leinster nickel operation, with the potential to develop untapped potential and provide feed to fill spare capacity in the mill.

Work has also commenced at the underground Venus Mine near Leinster on the new main ventilation shaft and pastefill plant, where Nickel West will operate the underground infrastructure for the mine.

BHP is also developing the undercut for Leinster B11 (block cave) with first ore production expected in the second half of 2020,  pending external approvals.

Work has begun on the Mt Keith Satellite mine development with excavation of the northern pit (Six Mile Well), while construction of the haul road and additional capacity from the project will be matched to meet the Mt Keith mill requirements.

BHP expects production to grow by debottlenecking the milling circuit and leveraging the significant spare capacity in the flotation circuit of the concentrator to increase feed from 10.5mtpa to 12mtpa.

Over time progressive and incremental investment in new flotation technology could further expand capacity to 15mtpa and overall, expanding the milling capacity could improve processing of harder ores, reduce grind size and provide a recovery benefit – increasing equity production and supporting plans to fill the smelter.

Native title agreement

In August, Nickel West signed an agreement with the traditional owners of the land surrounding used by Nickel West’s operations in the northern Goldfields, the Tjiwarl people.

The Comprehensive Agreement with the Tjiwarl Aboriginal Corporation will provide native title compensation, financial and other support to assist the Tjiwarl people to deliver their community plans in areas such as health, education, training, employment and contracting.

The agreement also supports the ongoing development and operation of Nickel West, including a framework to work together on cultural heritage management and the protection of areas of special significance.

Tjiwarl Aboriginal Corporation director and Tjiwarl native title holder Brett Lewis said the agreement was a milestone for his people.

“It gives Tjiwarl a seat at the table,” Mr Lewis said.

“It means the respect of our fathers and mothers who didn’t have a say and will now get a say in their country.”

BHP Nickel West president Eddy Haegel said the agreement demonstrated a joint commitment to a long-term mutually beneficial partnership.

“This landmark agreement for the region has been built on trust, transparency and strong leadership from both parties,” Mr Haegel said.

“It reflects BHP’s commitment to making positive economic and social contributions in our communities, including employment and engagement of Tjiwarl people across our diverse operations in WA.”

The agreement will also provide support for the Mt Keith Satellite mine development, which will supply additional ore to the Mt Keith concentrator with first ore expected by the end of this year.

A Nickel West Tjiwarl Work Readiness Program is also underway in Kalgoorlie for Tjiwarl graduates to work on country at BHP’s northern operations in the Goldfields with 15 members of the Tjiwarl currently employed at Nickel West.

 

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