Australian Sirius Resources has announced that it has begun work on it Nova nickel-copper project near Balladonia after getting all the necessary statutory approvals.
According to the ASX Announcement, the company managed to achieve a cost saving of A$30 million compared with the A$473 million estimation in the original definitive feasibility study (DFS).
“It is very satisfying to have started mining of Nova exactly two and a half years since the announcement of its discovery and even more fitting that such a significant milestone should fall on Australia Day for this world-class project. We have started the project on time, on plan and significantly within original capex budget estimates. I would like to thank the WA Environmental Protection Agency, the Department of Mines and Petroleum, and the Department of Environment Regulation for their professional and efficient participation in this process,” said Sirius’ Managing Director Mark Bennett.
“It is also pleasing to continue involving local stakeholders such as the traditional owners and local pastoralists in the venture. Our project management team have done a great job getting Sirius to this point so smoothly, so quickly and with the benefit of significant savings. On behalf of all our shareholders and stakeholders I look forward to the project taking shape in a timely, responsible and above all a safe manner.”
The project is expected to cost A$443 million including a contingency of A$22 million.
Underground mining contractor Barminco – controlled by Gresham Private Equity – was announced as the winner of the contract to build the mine portal at Nova, with the three-year contract worth $129 million to the group.
The work is due to be finished in March, and the permanent accommodation village is expected to be completed by August at a cost of $23 million.
The huge Nova deposit was discovered in 2012. Output is expected to start in late 2016.
Tenders have closed for the engineering, procurement and construction (EPC) contract for the processing plant and the preferred tenderer for this will be announced in March 2015.
