Independence Group to unlock value of nickel sulphate from Nova

April 2, 2019News  

Independence Group (IGO) has advanced its prefeasibility study on its downstream nickel-cobalt extraction process, which involves hydrometallurgy of nickel sulphide concentrate in lieu of conventional smelting and refining methods.

IGO’s four-stage process would unlock higher prices than traditionally received from raw nickel-cobalt sulphide concentrate offtake agreements and directly link IGO to the energy storage supply chain.

The process is designed to optimise nickel sulphate production directly from concentrate without the need to first produce intermediary or refined nickel products.

It has resulted in extraction rates exceeding 97 per cent for both nickel and cobalt metal contained in the nickel-cobalt sulphide concentrate feed. This is sourced from IGO’s Nova nickel-copper-cobalt project in the Fraser Range in Western Australia.

“IGO has embraced this transformation to strategically focus on nickel and other metals critical to clean energy, with an interest in both upstream and downstream opportunities,” said IGO managing director Peter Bradford.

“Upstream, we have expanded our generative and greenfields exploration to drive the discovery of new nickel and copper projects – to provide the nickel and copper the world needs.”

The extraction process is intended to allow IGO capitalise on the need for nickel sulphate in high-density, rechargeable lithium-ion batteries for the growing electric vehicle (EV) and energy storage markets.

A scoping study by IGO last year suggested the cobalt extraction process was not only financially feasible, but could maximise recovery rates and be more environmentally sustainable than traditional methods as well

--------------------------------------------------------------------------------------------------------------------------------------------------What is very interesting is this from Nov. of this year.

https://www.australianmining.com.au/news/independence-group-to-unlock-value-of-nickel-sulphate-from-nova/

The company has completed its pre-feasibility study, which shows The IGO Process as a technologically advanced and cost competitive process for converting nickel sulphide concentrate directly to nickel sulphate.

IGO is also finalising nickel concentrate agreements for Nova’s nickel concentrate, which will be distributed in equal volumes to BHP Billiton Nickel West (five-year term) and Trafigura (three-year term).

The company also plans to award 100 per cent of Nova’s copper concentrate to Trafigura for a three-year term.

IGO stated it had achieved improved commercial terms with these agreements. They will replace IGO’s existing offtake agreements with Glencore and BHP, both of which are due to expire within less than a year.

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interesting that the deal for Trafigura ends in 2022 for the nickel concentrate ..what deal will it be replaced with after that?

And interesting that Glencore doesn't want any nickel? Notice that the nickel will be equally distributed between BHP and Trafigura.

Remember from the past. 2015-2016

You'll notice from 2016 that BHP took almost  half the nickel and glencore took the other  half. Trafigura took the copper. All terms were for 3 years.. What is interesting in the renewal is that the nickel is spoken for with the equal portions going to BHP and Trafigura (who only had copper before), and that Glencore has chosen to not participate in the nickel this time around.

"Sirius has wrapped up initial off-take agreements for nickel sulphide concentrate production from its Nova mine in Western Australia with global miner/trader Glencore signing to take 50% of output on confidential commercial terms.
MD Mark Bennett says, alongside existing off-take deals with BHP Billiton Nickel West and Trafigura, it completes its strategy of lining up buyers for the first 3 years of Nova’s planned 10-year life. First Nova production is due in late 2016."

2015:

Sirius Resources NL (ASX:SIR) has reached agreement with BHP Billiton (ASX:BHP) Nickel West Pty Ltd to supply approximately half of its planned nickel sulphide concentrate production from Nova.

The agreement is for a period of three years from commencement of production.

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"International commodity trader Trafigura has signed up to purchase the first three years of copper sulphide concentrate from Sirius Resources’ under-construction Nova mine in Western Australia.
Sirius expects to produce 11,000tpa copper concentrate alongside 26,000tpa nickel sulphide concentrate once production begins in late 2016. It has signed an off-take agreement with BHP Billiton’s Nickel West for about half the nickel output, and says negotiations for the remainder are advanced."

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Also,  what is interesting is the NEW CANADIAN CEO for BHP that starts Jan.1, 2020.

Not to forget that BHP has a confidentiality agreement signed with Noront in the Richard Nemis days.

Also what is very interesting is this act.

https://www.nrcan.gc.ca/mining-materials/resources/extractive-sector-transparency-measures-act-estma/18180

The Extractive Sector Transparency Measures Act (the Act) was enacted on December 16, 2014, and brought into force on June 1, 2015. The Act delivers on Canada’s international commitments to contribute to global efforts to increase transparency and deter corruption in the extractive sector by requiring extractive entities active in Canada to publicly disclose, on an annual basis, specific payments made to all governments in Canada and abroad.

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What is interesting is the RE-SUBMISSION in Sept 2019 by ...BHP, in regards to this transparancy act. This coupled with the NEW Canadian CEO starting in Jan 2020. Hmm?

https://www.nrcan.gc.ca/our-natural-resources/minerals-mining/mining-resources/extractive-sector-transparency-m/links-estma-reports/bhp-billitons-canadian-subsidiaries-providing-substituted-report-under-estma/19208