BHP Billiton keen on Ravensthorpe nickel
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BHP Billiton’s definitive feasibility study for its proposed $945 million Ravensthorpe nickel project has been extended past this quarter until mid-year.
A BHP Billiton spokesperson said the company was aiming to conduct one of the lowest cost laterite nickel mining and processing operations in the industry.
The type of ore at Ravensthorpe contributed to this and BHP Billiton was continuing test work to achieve the most favourable results, he said.
“We are trying to get the most juice out of the orange, if you like,” the spokesman said.
Plans for an operation that would supply 45,000 tonnes of nickel laterite and 1,800t of cobalt annually to subsidiary QNI’s northern Queensland refinery remained on track and an Environmental Protection Authority impact assessment report was expected next month, he said.
There would be a formal appeals period but, as with all necessaryapprovals, BHP Billiton was not anticipating any impediments.
An investment decision will be made by the end of this year, and following this, the company expects to move quickly to establish the open cut mining and acid leach processing operation.
If the project goes ahead, QNI will spend $300 million on an expansion and enhancement of the Yabulu refinery, which currently refines an annual 30,000 tonnes of Nickel and 2,000 tonnes of cobalt.
The impact also will be huge on the Ravensthorpe-Esperance region, with 1200 contractors accommodated at the mine site between 2003-2006 on a fly-in/fly-out basis. From 2007, BHP Billiton expects to need a permanent resident workforce of 300.
The company will process the ore on-site, then transport the concentrate 155 kilometres to Esperance, in containers.
Necessary infrastructure upgrades are already under way, including new power arrangements for Esperance, and discussions on options for road link and educational facility upgrades.
BHP Billiton has secured State funding support for regional infrastructure and will put in an application to the Federal Government this year.