Australian Mines announced that its Sconi cobalt-nickel-scandium project in North Queensland could generate $5 billion in free cashflow over the mine life.
Sconi’s life of mine has gone from 18 years to 30 years at minimum after an update on its ore reserve and mine plan.
The project is now expected to generate a total revenue of $13.27 billion.
Sconi is set to produce over 1.4 million tonnes of nickel sulphate (up 46 per cent), 209,000 tonnes of cobalt sulphate (up 37 per cent) and 1441 tonnes of scandium over its project life.
The total nickel and cobalt production from Sconi will be sufficient to produce the equivalent of at least 3-6 million electric vehicle battery packs, according to Australian Mines.
“As we stated in February, the revised mineral resource estimate was likely to have a positive impact on the overall economics of the proposed mining and processing operation at Sconi, which the bankable feasibility study (BFS) had already shown to be commercially viable,” Australian Mines managing director Benjamin Bell said.
“The additional tonnage forms the basis of a revised mine plan and ongoing refinements to the company’s BFS that we continue to work on, with the aim of maximising value to our shareholders.”
Total mineral resources for Sconi are now estimated at 75.71 million tonnes at 0.6 per cent nickel and 0.08 per cent cobalt.
Sconi was declared a prescribed project by the Queensland Government earlier this year, aimed to fast-track its future development.
Australian Mines will invest over $1 billion to build a battery metals production plant near the historic mining town of Greenvale, creating 500 jobs during construction and 300 full-time jobs once in production.
“In the construction phase, local businesses with experience in fabrication, engineering, labour, plant and equipment hire, metalwork, welding and drilling will all be encouraged to tender for work. This is in line on our promise of employing local, living local, buying local,” Bell concluded.