Name of the Project
Sconi cobalt/nickel/scandium project.

Location
North Queensland, Australia.

Project Owner/s
Australian Mines.

Project Description
The Sconi project includes the Greenvale, Lucknow and Kokomo mineral deposits.

The project is expected to produce about 46 800 t/y of nickel sulphate and 7 000 t/y of cobalt sulphate over its 30-year mine life.

The project includes a two-million-tonne-a-year ore processing plant for mixed nickel-cobalt hydroxide precipitate (MHP).

The project will feature a dry-stacked tailings system (sustainable method – no tailings dams), using renewable energy.

Construction is expected to first start at the Greenvale site.

Potential Job Creation
The project is expected to create 800 jobs, including 500 jobs during construction between 2022 and 2024, and a further 300 jobs during its operational phase from 2024 onwards.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $1.47-billion and an internal rate of return of 20%, with a payback of 5.8 years.

Capital Expenditure
The project is estimated at $974-million, including a $110-million contingency.

Planned Start/End Date
The project is expected to come online in 2024.

Latest Developments
Australian Mines has started exploring for additional nickel and cobalt resources at its Sconi project.

The additional exploration programme is intended to complement the existing resource at the Sconi project, which is currently estimated at 32.63-million tonnes, at 0.84% nickel equivalent, 0.69% nickel and 0.05% cobalt.

The exploration programme will focus on 14 targets, which will be investigated for their potential nickel and cobalt mineralisation. The results of the programme will be used to plan the next phase of exploration at the Sconi project, which is intended to include a reconnaissance drilling programme of priority targets. Further infill and extensional drilling phases may then follow, which would be designed to increase confidence in the grade and volume.

Australian Mines has an offtake agreement in place with battery producer LG Energy Solutions, which will result in LG purchasing 71 000 t of nickel and 7 000 t of cobalt in the form of MHP over an initial six-year term, with the potential to extend the offtake agreement for another five years, by mutual agreement.

Key Contracts and Suppliers
Ausenco, Orelogy and Simulus Laboratories.

Contact Details for Project Information
Australian Mines, tel +61 7 3184 9184 or email info@australianmines.com.au.