Syerston nickel–cobalt–platinum project

Abstract

The Syerston project comprises the development, mining and processing of nickel, cobalt and platinum resources in the central-west region of New South Wales, Australia, some 400 km northwest of Sydney. Wholly operated by Black Range Minerals, Ltd. (listed on the Australian Stock Exchange), Syerston will be a significant force in the Australian cobalt industry, producing approximately 4000 t/year cobalt for 20 years. Nickel production is initially projected at 18 500 t/year at an operating cost of $U.S.(0.18)/lb after cobalt credits. Recovery of 10 000-15 000 oz/year by-product platinum by gravity and magnetic separation has not yet been factored into the project economics.A detailed bankable feasibility study, which was funded by a $Aus.10 000 000 facility provided by CIBC Capital Partners of Toronto, Canada, and completed in June, 2000, confirmed Syerston's robust technical and financial viability as the best of the second-generation laterite deposits using pressure acid-leach technology. The capital cost is projected at $Aus.629 000 000 (including refinery).The status of the project in November, 2000, was as follows. The company was engaged in parallel negotiations with major industry partners and major banks for project debt. Parties offering completion support and/or seeking offtake agreements for cobalt production had been invited to analyse the project feasibility data and negotiations were under way. A detailed environmental impact statement had been produced for public comment and no issues had emerged that might delay approval. Likewise, there were no native title issues that could curtail development. Following assessment of tenders for the engineering procurement and construction management, which had been submitted by many engineering groups, the expectation was that construction would commence in the second quarter of 2001, followed by starts of ore commissioning in mid-2003, ramp-up production at the end of 2003 and full production in mid-2005.Syerston has the advantage of learning from the first generation of Western Australian nickel laterite projects and is confident that the materials technologies, capital and maintenance cost issues and commissioning schedule lessons have been fully addressed; reviews of the project by industry third parties and banks since completion of the bankable feasibility study confirm this opinion.