Sumitomo Metal Mining and Mitsubishi Corporation Join Forces in Australian Nickel Venture

Sumitomo Metal Mining and Mitsubishi Corporation have finalized an agreement with Ardea Resources to develop the Kalgoorlie Nickel Project - Goongarrie Hub in Western Australia. Together, they will form a joint venture to finance the definitive feasibility study for the project with a budget of 98.5 million AUD. This joint venture will ultimately hold a 50% stake in Kalgoorlie Nickel, the current project owner.

The Goongarrie Hub, part of the larger Kalgoorlie Nickel Project, stands as one of the world's most substantial nickel deposits. It is projected to produce about 30,000 tonnes of nickel and 2,000 tonnes of cobalt annually for over 40 years. The partnership aims to utilize Sumitomo Metal Mining’s technology for extracting nickel and cobalt from low-grade nickel oxide ore and Mitsubishi Corporation’s extensive experience in the Australian mining sector to explore the project’s viability. The feasibility study is scheduled to start in the first half of 2024 and conclude by the second half of 2025.

Additionally, the Japan Ministry of Economy, Trade and Industry has awarded a grant to support this joint venture, aiming to enhance the stability of critical mineral supplies in Japan.