PERTH (miningweekly.com) – ASX-listed Blackstone Minerals is on the hunt for third-party nickel concentrate providers to help feed its planned downstream operations in Vietnam.

Blackstone MD Scott Williamson told delegates at Paydirt’s Battery Minerals conference, in Perth, that the company would supply roughly 50% of its downstream processing ores from its own Ta Khoa nickel project, also in Vietnam, with the remainder of the feed to come from third-party suppliers.

Williamson said that suppliers in Australia and Canada were particularly being targeted to supply the downstream operations.

A previously completed prefeasibility study (PFS) into the downstream operation, which would upgrade nickel concentrate into battery grade nickel, estimated that the project would require a capital investment of $491-million to support a refining capacity of 400 000 t/y, producing 43 500 t/y of refined nickel, generating revenues of $14-billion over a ten-year operating life.

The project will also support average yearly nickel/cobalt/manganese (NCM) precursor production of 85 600 t/y, and average yearly copper by-product of 4 100 t/y.

The PFS estimated average annual operating cashflows of $451-million, with life-of-operation all-in costs estimated at $11 997/t NCM. The PFS estimated a post-tax net present value of $2-billion, and an internal rate of return of 67%.

Williamson said on Wednesday that the downstream operation would require a funding partner, adding that the company was looking at either divesting of a minority share in the downstream operation, or to joint venture on the operation.

“We haven't finalised what those structures will look like. But that's where we will bring in the funding. These groups will bring large capital funding to the table. They'll also bring the technology that allows us to unlock these downstream products, and then ultimately we'll be feeding enough nickel for half- to three-quarters of a million electric vehicles,” he added.