ENERGY MINERALS

Mincor sends first ore to Nickel West

MINCOR Resources has achieved another milestone on its journey towards nickel production.

 The first Mincor nickel ore being loaded onto an MLG truck

The first Mincor nickel ore being loaded onto an MLG truck

The first parcel of high-grade nickel ore has departed Mincor's Northern Operations, bound for BHP Nickel West's Kambalda nickel concentrator.

It comes after Mincor gave BHP the official start notice for the Kambalda offtake agreement in the December quarter.

It also triggers the start of the haulage contract with MLG Oz.

It is the first time ore has been trucked from a Mincor mine to the Kambalda concentrator in over six years, and signals the start of the stockpile build ahead of the commissioning of the concentrator in the June 2022 quarter.

"This is another fantastic achievement for our team as we close-in on first nickel concentrate production, which remains on track to be achieved next quarter," Mincor managing director David Southam said.

"It's a significant moment for everyone involved with Mincor to see high-grade nickel ore being hauled from one of our mines to the Kambalda nickel concentrator.

"With the current nickel price substantially above the assumed price used in our DFS, we are incredibly excited to be on the cusp of production once again in Kambalda."

Mincor used a nickel price of A$22,500 per tonne in its definitive feasibility study.

Nickel is currently trading at about $32,750/t (US$23,350/t).

Multiple ore drives are now online at the Northern Operations and development is nearing the top of the orebody at Cassini, with first ore expected in the current quarter. 

The $68 million Kambalda restart is on budget and due for first production in the June quarter.

Operations will ramp up to 16,000 tonnes of nickel per annum.

Shares in Mincor rose 2% to $1.82, not far off the stock's 14-year high of $1.935.

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