Western Areas to spend $32m on Odysseus

The board of nickel miner Western Areas has approved a $32 million capital works program at the company’s Odysseus project, with the definitive feasibility study set to be released in the September quarter.

The early works program will comprise three major work groups staged over an 18‐month period, with work set to commence later this month.  

The first work program will include the refurbishment of existing evaporations ponds, pipeline upgrades and continuation of pit dewatering, and is expected to cost $8.3 million.  

The second program, costed at $10.5 million, will involve construction of two new evaporation ponds and dewatering of the decline.  

The final work program will encompass infrastructure installation required to support the rehabilitation of the decline from the portal to 500 metres below surface, and has been assigned a capital cost of $13.2 million.  

Once the program is complete, Odysseus will be ready for development, according to the prefeasibility study schedule.

Managing director Dan Lougher said Odysseus would be the company’s second production hub in Western Australia.  

“We are very excited by both the Odysseus Project and the regional exploration potential that the greater Cosmos nickel complex demonstrates in both base and precious metals,” he said

“We have taken this decision to commence early works, prior to the release of the DFS, due to our confidence in the overall project and just as importantly, our confidence in the nickel sulphide market.”

Mr Lougher said demand for nickel sulphides in the battery and electric vehicle market was forecast to grow substantially.

“We believe that Odysseus is one of a very few select nickel sulphide projects that will be coming into production in a timeframe that will enable it to deliver into that growing demand profile, which we are seeing validated by the strong inbound interest from potential offtake parties and project investors,” he said.

Meanwhile, Western Areas also provided an update on the DFS, with the company expecting Odysseus to have a mine life beyond 10 years, with average production in excess of 12,000 tonnes per annum of contained nickel in concentrate.

Shares in Western Areas finished up 0.6 per cent at $3.21 each today.