Ardea Resources Partners with Sumitomo and Mitsubishi for Major Nickel-Cobalt Project in Western Australia

Ardea Resources has entered into a 50:50 joint venture with Japan's Sumitomo Metal Mining (SMM) and Mitsubishi to develop the Kalgoorlie Nickel Project (KNP) - Goongarrie Hub deposit in Western Australia. Recognized as one of the largest nickel-cobalt deposits in the region, the Goongarrie Hub boasts 854 million tonnes of lateritic ore with average grades of 0.71% nickel and 0.045% cobalt. The project is expected to produce 30,000 tonnes of nickel and 2,000 tonnes of cobalt annually for over 40 years.

The partners have committed over $60 million for a feasibility study slated for completion in the second half of 2025, with a final investment decision anticipated in 2026. Despite the promising outlook, some Ardea shareholders have expressed concerns regarding the proposed extraction technology. The joint venture plans to implement pressurised acid leaching (HPAL) technology, a method that has shown success in Chinese-owned operations in Indonesia but has faced challenges in previous Australian implementations.

This ambitious project not only signifies a significant step in nickel and cobalt production but also highlights the international collaboration aimed at developing critical minerals essential for the global energy transition. As Ardea and its Japanese partners navigate the complexities of HPAL technology, the industry will be keenly watching for developments that could set a precedent for future mining endeavors in Australia.