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Ardea forms JV with Sumitomo and Mitsubishi for development of Australia nickel project

Published by , Editorial Assistant
Global Mining Review,

Ardea Resources Limited has entered into a binding Cooperation Agreement with Sumitomo Metal Mining Co., Ltd (SMM) and Mitsubishi Corporation (MC) (Consortium) to form a 50:50 incorporated joint venture (JV) to develop the Kalgoorlie Nickel Project (KNP) – Goongarrie Hub.

The incorporated JV vehicle will be Kalgoorlie Nickel Pty Ltd (KNPL), which is currently a wholly owned subsidiary of Ardea.

The Cooperation Agreement sets out the terms and conditions on which the Consortium, Ardea and KNPL will fund and conduct the Definitive Feasibility Study (DFS), and upon agreement by the parties and subject to a positive DFS outcome, Front-End Engineering Design (FEED) and Pre-Commitment Activities (PCA), leading to a Final Investment Decision (FID) on the KNP – Goongarrie Hub.

Separately to the Cooperation Agreement, Ardea, SMM and KNPL have agreed on funding support arrangements, enabling earlier DFS activities to occur in 2Q24.

This Transaction represents the successful conclusion of Ardea’s Strategic Partner process and is a major milestone for the development of the KNP – Goongarrie Hub into a globally significant nickel-cobalt operation.

Managing Director and CEO of Ardea, Andrew Penkethman, said: “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. Sumitomo Metal Mining and Mitsubishi Corporation are high quality partners that can bring leading expertise to continue to drive the project forward.

Sumitomo Metal Mining is a leader in developing and operating nickel laterite projects and is fully integrated within both the stainless steel and lithium-ion battery sectors. Mitsubishi Corporation has decades of resources sector experience within Australia and has been a significant investor and contributor to the Australian economy.

Ardea acknowledges Japan as a well-respected partner of Australia and looks forward to being part of the growing relationship between the two nations, as they progress their commitment to the global energy transition. This is especially relevant with nickel and cobalt classified as critical minerals by both nations.

Once in production, the Kalgoorlie Nickel Project – Goongarrie Hub is expected to be one of the largest nickel-cobalt producers in Australia. The project will meet the high ESG standards expected from modern society and be a leader in responsible resource project development, as demonstrated by Ardea’s 2023 Pre-Feasibility Study.

I would like to thank Ardea Shareholders and stakeholders for their continued support as we have been undertaking the KNP – Goongarrie Hub Strategic Partner process. The completion of the Goongarrie Hub Strategic Partner process would not have been possible without the significant input from the Ardea team, advisers and key service providers. Their contributions are acknowledged and appreciated.”

Masaru Takebayashi, Director and Managing Executive Officer and General Manager of Non-Ferrous Metals Div. of SMM noted: “Sumitomo Metal Mining Co., Ltd. and Mitsubishi Corporation are pleased to formalise this cooperation agreement with Ardea in relation to the high-quality Kalgoorlie Nickel Project - Goongarrie Hub. We look forward to working collaboratively with the Ardea team to leverage our complementary skills and capabilities to advance this major critical minerals project in a manner which meets the high ESG standards expected from modern society.”

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Australian mining news Nickel mining news