Nickel
Australia is the world’s third largest nickel producer, after Canada and Russia, producing 128,000 t in 2003, a 3% decrease from 2002. Expenditure on nickel-cobalt exploration for 2003 was estimated at A$70.5 million, With the advent of the new Pressure Acid Leaching process for processing lateritic nickel – cobalt ores could see Australia capturing 9% of the western world’s nickel market from lateritic nickel ores. Currently lateritic nickel contributes 40% towards global nickel production (sulphide ores the remaining 40%). All of Australia’s nickel miens are situated in Western Australia, most in and around the Kalgoorlie – Leonara regions. Most of Australia’s nickel production is exported to Europe, Japan and the United States. Australia’s economic demonstrated resources are estimated at containing 9 million tons of nickel, of which 51% is hosted by laterites.
Several new projects and mines are being developed notably the new lateritic nickel mines, Murrin Murrin, Cawse, Bulong, Ravensthorpe and Marlborough (in Queensland). Existing mines include the Radio Hill mine, Kambalda, Mount Keith, Forrestania and Black Swan mines. Australia’s largest producer (world's second-largest nickel-in-concentrate producer) produced 117,722 t, 16% of world nickel-in-concentrate production.
WMC operates three underground mines in Western Australia, Kambalda, Mount Keith and Leinster mines. WMC also operates the Kalgoorlie Nickel smelter and Kwinana Nickel refinery, both located in West Australia. The Mt Keith Nickel mine is located north east of Perth in Western Australia. The orebody is located in the Agnew-Wiluna greenstone belt, which also hosts several gold mines. Mount Keith is one of the world’s largest low grade nickel mines, with total resources of 477 Mt (cut off of 0.4% Ni). The Leinster mine is located north of Kalgoorlie and comprises two underground operations. In February 2003, WMC commenced a major extension of its Perseverance underground mine at Leinster. Over the next eight years it will extend mining 350 m deeper to 1,100 m below the ground surface, and install a new materials-handling system to crush and hoist ore to the surface. The company entered into a A$1 billion agreement with China's largest producer, Jinchuan Group Ltd, to supply 90,000 t of nickel-in-matte.The company will exporta total of 120,000 t of nickel-in-matte to Jinchuan between 2005 and 2010.
Outokumpu of Finland operated a single high grade sulphide hosted nickel mine in Western Australia, Black Swan. The Black Swan nickel mine is located in Western Australia, northeast of Kalgoorlie. All nickel concentrates (estimated at 20 000t/year) were exported to Outokumpu's Harjavalta nickel smelter in Finland. MPI Mines Ltd announced plans to start open-pit mining at the Black Swan deposit by the end of 2004.
BHP Billiton’s wholly owned nickel smelting subsidiary; QNI has acquired the remaining 50% of Comet resources’ Ravensthorpe mine. Ravensthorpe has the potential to be the lowest cost nickel producer in the world and will provide QNI’s plant at Yabulu with nickel concentrate. BHP Billiton has developed a proprietary atmospheric leach processes to be used on its Ravensthorpe laterite nickel project, WA. The company estimates annual production of MHP at Ravensthorpe containing up to 50,000 t of nickel and 1,400 t of cobalt, to be shipped from Esperance to Townsville for refining at the QNI Yabulu refinery. Production is to start in 2007..
Jubilee Mines NL commenced the mining the Cosmos Deep orebody after the completion of the Cosmos open pit. Estimated future production from the underground mine is 150,000 t/y of ore yielding 50,000 t of nickel-inconcentrate (10,000 t of contained nickel) over a mine life of 3.5 years.
Allegiance Mining NL received environmental approval for the first stage of development of the Avebury nickel deposit in Tasmania, which will involve construction of an access road and an 800 m long decline to enable bulk sampling and geotechnical assessment. Production will be at 300,000 t/y.
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