Name of the Project
Kalgoorlie nickel project (KNP) – Goongarrie Hub.

Location
City of Kalgoorlie-Boulder, Australia.

Project Owner/s
Metals exploration and development company Ardea Resources.

Project Description
KNP has an ore reserve of 194.1-million tonnes at 0.70% nickel and 0.05% cobalt for 1.36-million tonnes of contained nickel and 99 000 t of contained cobalt.

The July 2023 prefeasibility study envisages the use of conventional low-cost openpit mining methods, with mine optimisation studies projecting the production of about 30 000 t/y of nickel and 2 000 t/y of cobalt for more than 40 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project generates a pretax net present value, at a 7% discount rate, of A$7.63-billion and an internal rate of return of 30%, with a payback of 3.1 years.

Capital Expenditure
A$3.12-billion.

Planned Start/End Date
The project execution phase is tentatively targeted for the third quarter of 2025, allowing for production by early 2028.

Latest Developments
Ardea Resources has received nonbinding support from Export Finance Australia (EFA) and the Export-Import Bank of the United States (Exim) for the potential financing of its nickel/cobalt project.

Subsidiary joint venture vehicle Kalgoorlie Nickel has been issued with a nonbinding letter of support from EFA and a letter of interest from Exim, together representing potential funding of up to about A$1-billion equivalent.

EFA’s letter indicates possible support of up to A$500-million, subject to further due diligence and internal approvals, while Exim has signalled potential financing of up to $350-million under its Supply Chain Resiliency Initiative.

The coordinated support reflects the project’s strategic importance in strengthening critical minerals supply chains between Australia, the US and allied nations, particularly for the battery, energy storage and electric vehicle sectors.

Ardea MD and CEO Andrew Penkethman has said the support marks a "major milestone" in advancing the Goongarrie Hub towards development.

EFA MD and CEO John Hopkins has said the agency’s support aligns with its mandate to promote Australia’s critical minerals sector. 

EFA has explained that potential funding remains subject to the project's meeting eligibility requirements, including environmental, social and financial assessments, as well as credit, risk and legal approvals.

Ardea is continuing to engage with both agencies through the single point of entry process as it advanced project development and financing discussions. 

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Ardea Resources, tel +61 8 6244 5136 or email ardea@ardearesources.com.au.