
Ardea Resources Limited has partnered with Sumitomo Metal Mining Co., Ltd (SMM) and Mitsubishi Corporation (MC) to form a 50:50 incorporated joint venture named Kalgoorlie Nickel Pty Ltd (KNPL) for the development of the Kalgoorlie Nickel Project (KNP) – Goongarrie Hub in Western Australia.
Under the terms of the Cooperation Agreement, the Consortium, Ardea, and KNPL will jointly fund and conduct the Definitive Feasibility Study (DFS), with the Consortium funding 100 per cent of the DFS costs up to the agreed budget of approximately $98.5 million.
Additionally, the Consortium will assist KNPL in optimising debt financing to earn an ultimate 50 per cent interest in the JV, while Ardea retains the other 50 per cent.
The Cooperation Agreement also outlines the funding support arrangements agreed upon by Ardea, SMM, and KNPL, allowing earlier DFS activities to occur in Q2 2024.
The Transaction is subject to conditions precedent, including FIRB approval and the execution of a binding Shareholders’ Agreement, with completion expected before the end of Q3 2024.
Andrew Penkethman, Managing Director and CEO of Ardea expressed his satisfaction with the strategic partnership, highlighting the expertise and capabilities that Sumitomo Metal Mining and Mitsubishi Corporation bring to the project.
“The Ardea team have been focused on aligning the company with the best possible strategic partners to assist in realising the full potential of the Kalgoorlie Nickel Project – Goongarrie Hub,” said Penkethman.
Masaru Takebayashi, Director and Managing Executive Officer and General Manager of Non-Ferrous Metals Div. of SMM noted the commitment of Sumitomo Metal Mining Co., Ltd. and Mitsubishi Corporation to advancing the Kalgoorlie Nickel Project in a manner that meets high ESG standards expected from modern society.
The announcement has been welcomed by government officials, with the Western Australian Minister for Mines and Petroleum, Hon. David Michael MLA, acknowledging the commitment from Ardea and the Japanese companies to develop the Kalgoorlie Nickel Project.
Hon. Madeleine King MP, the Federal Minister for Resources and Minister for Northern Australia, also praised the collaboration between Australia and Japan, highlighting the project’s economic and environmental significance in the global energy transition.
The Kalgoorlie Nickel Project – Goongarrie Hub is set to become one of the largest nickel-cobalt producers in Australia, meeting high ESG standards and demonstrating responsible resource project development.