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Canada Nickel signs MoU with Glencore Canada

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Global Mining Review,

Canada Nickel Company Inc. has announced that it has entered into a non-binding memorandum of understanding (MoU) with Glencore Canada Corp. in order to examine the potential use of Glencore's Kidd concentrator and metallurgical site (met site) in Timmins, Ontario, for the treatment and processing of material mined from Canada Nickel’s 100% owned Crawford Nickel-Cobalt Sulfide project. Crawford is located 40 km north of Glencore’s operations.

“The opportunity to utilise the excess capacity and existing infrastructure at the Kidd Met Site provides the potential to allow a faster, simpler, smaller scale start-up of Crawford at a vastly lower capital cost while the company continues to permit and develop the much larger scale project currently being contemplated. Given the potential for this significant change in the scope of the project start-up, the release of the preliminary economic assessment (PEA) will be delayed until the end of March 2021 to allow this option, if successful, to be incorporated,” said Mark Selby, Chair and CEO of Canada Nickel.

Canada Nickel has completed an initial high-level assessment and will now proceed with a detailed study on the potential for upgrading excess capacity at the Kidd Concentrator and/or utilising the existing infrastructure in place at the Kidd Met Site for milling and further processing the nickel-cobalt and magnetite concentrates that are expected to be produced from Crawford. Should the study deliver a positive outcome for both parties, the parties will continue good faith negotiations towards a binding agreement. The MoU is non-exclusive.

This detailed study is expected to be completed by the end of March 2021. Ausenco Engineering Canada Inc., currently retained as the lead study consultant for the Crawford PEA that is underway, has been engaged to support the assessment of the Kidd met site facilities.

Kidd operations

Located in Timmins, Ontario, Glencore Canada Corp. operates the Kidd Operations consisting of the Kidd met site and the Kidd mine.

The concentrator is located on the property of the Kidd met site. The Kidd met site is located 27 km east of Timmins in the Townships of Hoyle and Matheson, within the Timmins City Limits. Built in 1966 with numerous upgrades over the years, the concentrator currently processes metal ore to produce copper and zinc concentrates. The facility has a design rated capacity of 12 500 tpd and is fully permitted with water taking and discharge permits and thickened tailings storage. The site has incoming and outgoing rail service via Ontario Northland Railway.

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Copper mining news Nickel mining news Canadian mining news