Alliance Nickel secures major project status

Perth-based Alliance Nickel has notched major project status from the federal government for its nickel cobalt project near Leonora.

Securing major project status means Alliance’s flagship project is recognised as strategically significant both economically and in the critical minerals industry.

Alliance’s NiWest project will be able to receive additional support for navigating both state and federal regulatory approvals over the next few years.

The recognition comes amid a tumultuous period for the nickel industry, with operators grappling with a halving in price due to a flood of Indonesian supply. 

It also marks the first major project status granted to a nickel project since the commodity was added to the critical minerals list earlier this year.

The battery metal was added to the list in a bid to aid the flailing industry, enabling companies to access Commonwealth funding, including finance under the $4 billion Critical Minerals Facility, as well as critical minerals related grant programs.

Alliance claims its NiWest project contains one of Australia’s highest-grade undeveloped nickel laterite mineral resources.

It is planning to target 90,000 tonnes of nickel sulphate and 7,000 tonnes of cobalt sulphate, and is focused on progressing a definitive feasibility study for Q3 of 2024.

Today’s announcement bolstered Alliance’s share price up 128.5 per cent to trade at 8 cents per share at 11.30AM AWST.

“We are delighted NiWest has been recognised by the Australian government as a project of national significant,” managing director Paul Kopejtka said.

“The NiWest project is now recognised as significant from an industry and economic perspective, and we look forward to working closely with relevant ministers, government and industry bodies as we move towards construction.”

Last year, Alliance struck a $15 million offtake agreement with automotive manufacturer Stellantis to supply battery grade materials for electric vehicles. 

That deal hinges on the successful start-up of commercial production and other conditions at the NiWest project.